Carbon neutral renewable fuels generated from solar-driven CO₂ reduction have the potential to be a clean, sustainable, and abundant energy source. Inspired by natural photosynthesis in green plants, photocatalytic reduction of CO₂ into hydrocarbon fuels couples the reductive half-reaction of CO₂ fixation with a matched oxidative half-reaction such as water oxidation to achieve a carbon neutral cycle, mitigating the greenhouse gas emissions and the depletion of future fossil fuel. The scientific challenge is to develop a class of photocatalysts made of earth abundant, low cost, non-toxic, sunlight stable and highly active materials. This chapter introduces state-of-the-art research activities of design of new photocatalytic materials from the point of light harvesting, adsorption of reactants, charge separation and transport, and CO₂ activation. The challenges and prospects for future development of this field are also presented.