The gas diffusion layer (GDL) is a critical component of proton exchange membrane fuel cells (PEMFCs) and accounts for 40%-50% of the fuel cell membrane's cost. Developing a low-cost and high-performance GDL is imperative to advance the commercialization of PEMFCs. In this study, we generated a flexible carbon cloth with high electrical conductivity and porosity from cellulose cloth at a low temperature (1500 ℃). The carbon cloth is composed of micron-sized carbon fibers with a porosity of up to 76.93%. Through catalytic graphitization of iron-based compounds, massive carbon nanotube clusters were formed in situ on the surface of carbon fibers, which effectively enhanced the electrical conductivity of the carbon cloth. The in-plane resistance was as low as 34 mΩ·cm while the through-plane resistance was 2.8 mΩ·cm under a pressure of 2 MPa, meeting the performance standard of commercial carbon cloth. Furthermore, the PEMFC with the prepared carbon cloth as GDLs exhibits a power density of 0.4 W·cm^-2 at current density of 0.7 A·cm^-2, exceeding the device with commercial carbon cloth (0.34 W·cm^-2 at 0.7 A·cm^-2). This study demonstrates that the prepared biomass-derived carbon cloth with low-cost and high- performance holds great potential for advanced GDLs for PEMFCs.