The report underscores clean fuels as a critical — and still underfunded — pillar of the global energy transition, with the potential to strengthen energy security, create jobs, and cut emissions in transport and industry.

Clean fuels, which include biofuels, hydrogen derivatives, and lower-carbon fossil fuels, currently account for just over 1% of global clean energy investment, despite liquid and gaseous fuels supplying 56% of global energy demand today.

Titled Fuelling the Future: How Business, Finance and Policy can Accelerate the Clean Fuels Market, the report was developed in collaboration with Bain & Company. It outlines policy, financing, and business measures needed to turn global ambitions into bankable, economically viable projects that can scale within existing energy systems.

A newly launched Digital Playbook accompanies the report, offering practical case studies and implementation examples to help governments and companies accelerate project development.

“Clean fuels represent an important pathway to advancing sustainability while continuing to supply the energy required by the global economic system,” said Roberto Bocca, Head of the Centre for Energy and Materials, World Economic Forum.

“Our new research shows that the clean fuels industry can build on existing infrastructure to deliver durable environmental benefits alongside economic value,” he added.

Momentum around clean fuels is growing, the report noted, citing initiatives such as the “Belém 4x” pledge, through which more than 25 countries committed at COP30 to quadruple clean fuel production and use by 2035.

However, the report stressed that achieving this ambition will require coordinated action across policy, finance, and industry to unlock a larger pipeline of viable projects that can deliver returns to investors and long-term value to national economies.

“Over the last few years, the question among business leaders in the industry has evolved from should we invest, to how and when,” said Cate Hight, partner in the Energy and Natural Resource practice at Bain & Company.

“We find that those who succeed generating value are rethinking how to approach projects focusing on customers, embracing flexibility and partnerships, and mitigating investment risk,” Hight added.

Despite rising interest, many clean fuel projects continue to face barriers, including high upfront costs, uncertain demand, fragmented value chains, and uneven policy environments across regions.

The report said overcoming these challenges will require predictable, performance-based policies, stronger public-private risk-sharing mechanisms, and closer collaboration across value chains to better align supply and demand.

The analysis draws on technical and economic modelling, expert consultations, and contributions from more than 30 organizations involved in the Forum’s Future of Clean Fuels initiative. Case studies span Latin America, Europe, and Southeast Asia, covering fuel types from biofuels and biogases to synthetic fuels and hydrogen derivatives.

The report forms part of the Forum’s broader efforts to scale clean energy solutions through initiatives such as the Future of Clean Fuels initiative, the First Movers Coalition, Airports of Tomorrow, and the Transitioning Industrial Clusters initiative.

The World Economic Forum’s 56th Annual Meeting, held January 19–23, 2026 in Davos-Klosters, convenes leaders from business, government, international organizations, civil society, and academia under the theme A Spirit of Dialogue. Click here to learn more.

All major digital economy pillars in the country are now growing at double-digit rates. E-commerce remains the largest contributor to the Philippines’ GMV, representing more than 60% of the total market. AI-powered platforms are reshaping customer journeys, making shopping more personalized and frictionless. A standout finding is the explosive rise of video commerce, now used by around 475,000 sellers and stores—up 90% from last year—resulting in 1.2 billion transactions, a 35% increase from 2024. This fast-growing segment is driven strongly by fashion and accessories, which contribute 28% of video commerce GMV, and beauty and personal care, which account for 23%.

The travel sector continues to rebound across Southeast Asia, recording an 11% climb to $51 billion in GMV and $24 billion in revenue across flights and accommodations. In the Philippines, online travel posted a 14% increase, reaching $4 billion GMV in 2025. Elevated fares, broader recovery in tourism and country-led promotions have all contributed to this growth. Visa policies and international campaigns remain influential in shaping Filipino travel routes and destinations.

Online media is also expanding steadily. Regional GMV jumped 14% largely due to rising ad expenditure—which grew to 16% from 14% the previous year—and the continued strength of gaming, now at 6% from 5%. The Philippines is one of Southeast Asia’s fastest-growing online media markets with a 16% year-on-year expansion, alongside Vietnam and Indonesia.

Digital financial services continue to scale rapidly across the region, posting 19% growth in digital payments, 18% in digital lending, 24% in digital wealth and 16% in digital insurance. The Philippines mirrors this momentum, particularly in digital wealth, which surged by 36% to reach $2 billion in assets under management, while digital insurance grew by 27% to reach $0.1 billion in AUM and gross written premiums. The country also ranks as the second-fastest-growing digital payments market in Southeast Asia, up 20% with a gross transaction value of $150 billion, trailing only Indonesia.

Transport and food delivery are likewise sustaining their upward trajectory. Across the region, food delivery GMV grew 14% to $22 billion with revenue rising 18% to $2.4 billion, while transport GMV increased 16% to $11.1 billion with revenue up 17% to $1.8 billion. The Philippines, together with Vietnam, leads these categories with 20% growth—an acceleration driven by more efficient logistics, improved transport availability and AI-driven personalization aimed at sustainable profitability.

A major theme of this year’s report is the Philippines’ rapid and widespread adoption of artificial intelligence. The country is one of only five Southeast Asian markets ranking among the top 20 globally in interest in multimodal AI—solutions capable of processing text, images, audio and video simultaneously. AI use is becoming deeply embedded in everyday digital behavior, with 78% of Filipino users relying on AI-powered tools to discover content and simplify tasks. Nearly half cite time savings in research and comparison as their primary motivation for using AI features.

The Philippine workforce is also embracing AI upskilling at one of the fastest paces in the region, with enrollments in generative AI courses expanding 4.8 times, second only to Vietnam’s 5.2 times growth. About 77% of Filipino workers have taken steps to learn AI tools, demonstrating a proactive stance toward future work readiness.

Commercial adoption is accelerating as well. Apps emphasizing AI features have seen revenues climb 79%, with users upgrading for benefits such as time and money savings, better deal discovery and enhanced fraud protection. Notably, 94% of Filipinos say they are willing to share data access—including browsing behavior and social connections—with AI agents, reflecting a high level of trust and perceived value.

Prep Palacios, Country Manager of Google Philippines, notes that the country’s momentum reflects a deep and systemic digital shift. “The Philippines is a digital powerhouse, sustaining its double-digit growth and firmly on track to hit $36 billion in GMV by 2025. This momentum is not a temporary spike; it’s a sustained, systemic transformation driven by innovative platforms, a tech-positive regulatory environment, and uniquely AI-curious Filipino consumers with real spending power. With digital adoption accelerating nationwide, the real story is that our digital economy is becoming truly ubiquitous. The imperative now is to strategically leverage this momentum so that more Filipinos are equipped to benefit from AI,” she said.

Bennett Aquino, Partner at Bain & Company, emphasizes the resilience of the region’s digital landscape. “Southeast Asia’s digital economy has shown extraordinary growth and remarkable resilience despite periods of investor caution and shifting macroeconomic conditions. The Philippines remains one of the region’s fastest-growing digital economies, fueled by strong momentum in e-commerce, transport and food delivery, and supported by a digitally confident population. With rising AI adoption, the opportunity now lies in how businesses harness AI as a catalyst for long-term value creation while navigating the country’s unique structural realities,” he said.

As the Philippines moves toward the $36 billion GMV milestone, the e-Conomy SEA 2025 Report signals a clear message: the country is entering a new era where digital acceleration and AI readiness are no longer future ambitions—they are economic realities reshaping how Filipinos shop, travel, work and live.

Bain & Company, the global business and management consultancy, recently announced the opening of its Philippines office in Manila, marking its broader reach across the Southeast Asia region. This follows the continued expansion of its client base both in the Philippines and across the region.

“On the back of our double-digit growth, Bain & Company is excited to establish a physical footprint in the Philippines. The Philippines has emerged as a significant market in Southeast Asia, with high GDP growth rates, a large and growing consumer market, and underpinned by a strong talent pool. Beyond the underlying fundamentals, we have also seen increased investment activity through COVID, attracted by the pace of consumer change, increased digitalization and a dynamic entrepreneurial environment,” said Wade Cruse, Managing Partner for Southeast Asia, Bain & Company.

Bain’s Manila office represents the official arrival of one of the world’s leading consulting firms to the country. The firm serves more than 60% of the Fortune 500, operating in 40 countries and 65 cities, with more than 14,000 employees worldwide. Bain’s entry into Philippines builds on the firm’s work for over nearly three decades with some of the largest domestic and international companies across key sectors, including Financial Services, Consumer Products, Retail, Communications, Media & Entertainment, Real Estate and Advanced Manufacturing Services. Furthermore, the firm is widely recognized as the leading partner to the Private Equity industry, regionally and globally.

Patricia Buenaventura Nichol, who has been a partner with Bain’s global financial services practice, will serve as office head for the Bain Manila office, responsible for its growth, operations, people and strategy. “For many years, we have had the ambition to establish Bain’s physical presence in the Philippines. We had already been serving local Philippine clients, MNCs and investors albeit from our other offices. Establishing a strong local presence with a senior Filipino leadership team will allow us to further increase the depth of our partnerships with our clients, attract and develop the best local talent, and enhance the capabilities in our communities. It is our intent to bring in local, regional and global experts in key sectors to drive change ‘at pace’ and we look forward to collaborating and supporting our business leaders and changemakers.”

Bain’s mission is to help its clients create high levels of value with the aim to set new standards of excellence in our respective industries jointly. With a passion for results and through working closely with business leaders, Bain has helped firms unlock their full potential on pressing issues like environmental, social, and governance (ESG), as well as digitalization and new business building.

“We are seeing a multitude of opportunities for our clients in Southeast Asia, and given our deep understanding of the country’s most critical business issues, we are uniquely placed to handle clients’ management challenges and help them to achieve tangible, sustainable results,” said Jean-Pierre Felenbok, Chairman of Bain & Company, Philippines. “The Philippines is a market that presents great potential, and our local team will work in close partnership with Bain’s global network, deploying top international expertise to serve the increasing number of priority client relationships we have locally,” he added.

Bain’s Manila office is the firm’s fifth venture in the dynamic Southeast Asia region. It will operate in conjunction with its other offices in Bangkok, Jakarta, Kuala Lumpur, and Singapore. It will also play a critical role as a talent hub in the region. Recognized globally as a great place to work, the firm has maintained its spot in the top four on Glassdoor’s ‘Best Places to Work’ list for the last 14 years.