Everything about the Global Biofuel Alliance and its Initiative

Prime Minister Narendra Modi, as part of India’s G20 Presidency, initiated the establishment of the Global Biofuel Alliance on September 9, 2023. This alliance garnered backing from 19 countries and international organizations. The Indian government highlighted the Global Biofuel Alliance as a key objective during the G20 Summit, building on its initial proposal at the India Energy Week in February.

Source Credit: The Hindu

Biofuels are energy generated from biomass, encompassing organic and agricultural materials. Promoting emission reduction, biofuels have gained global recognition for their role in achieving net zero carbon emissions. Additionally, for India, biofuels play a key role in reducing dependence on energy imports, addressing a significant portion of the country’s oil and natural gas requirements.

The Global Biofuel Alliance (GBA) is a collaborative initiative proposed by India to establish an alliance consisting of governments, international organizations, and industry players, aiming to accelerate the adoption and development of biofuels. By uniting major biofuel consumers and producers, the GBA seeks to position biofuels as a vital component of the global energy transition.

Highlighting the momentous global drive for cleaner and more environmentally-friendly energy, Petroleum Minister Hardeep Singh Puri emphasized the historic significance of the GBA’s launch.

Numerous countries have joined the alliance, including Brazil, the United States, Canada, Italy, South Africa, Argentina, and India. Furthermore, non-G20 countries such as Bangladesh, Singapore, and Iceland have expressed their commitment to participate. Several international organizations, including the World Bank, the World Economic Forum, and the International Energy Agency, have also become members.

Approximately 85% of the world’s biofuel production is contributed by three members – Brazil, India, and the United States. The United States accounts for 52%, while Brazil and India contribute 30% and 3%, respectively.

The primary objective of the GBA is to support biofuel development through capacity-building activities across the entire value chain. It will offer technical assistance to national programs, promote knowledge-sharing on policy lessons, and facilitate the creation of a virtual marketplace connecting industries, countries, technology providers, and key stakeholders in mapping demand and supply. Let’s see how.

1. Technology Transfer: The GBA membership provides access to valuable technologies and international climate funds, accelerating advancements in compressed biogas and third-gen ethanol plant capacities. This facilitates the transition to cleaner energy sources.

2. Ethanol Blending: The membership enhances India’s ethanol blending initiatives, helping it achieve E-20 (20% ethanol blending) with petrol by 2025-26. India can leverage Brazil’s successful E-85 model to reduce emissions and energy costs.

3. Flex Fuel Vehicles: India can adopt Brazilian technologies to introduce Flex Fuel Vehicles capable of running on various fuel blends, including ethanol-petrol mixtures like E85. This contributes to reduced emissions and savings in crude oil import expenses.

4. Global Climate Action: With its active participation in the GBA, India positions itself as a key player in global climate action, demonstrating its commitment and role in transitioning to cleaner energy sources.

5. Promotion of Biofuel Exports: The GBA offers an opportunity for India to expand its share in global biofuel production, become a significant exporter, and boost economic growth.

6. Energy Independence: By promoting biofuel utilization, India can reduce its dependence on foreign crude oil, enhancing energy security and reducing vulnerability to external supply shocks.

7. Fiscal Deficit and Inflation Reduction: By reducing dependence on costly crude oil imports, the GBA’s efforts to boost biofuel production can help India manage its fiscal deficit and lower inflation.

8. Job Creation: Investments in the biofuel sector, driven by the GBA, have the potential to generate employment opportunities for the youth, supporting India’s demographic aspirations and aligning with the country’s economic goals.

9. Support for Farmers: The increased biofuel production, especially from sugarcane crops, benefits farmers by providing additional income, aligning with India’s agricultural development goals.

In order to achieve global energy systems aligned with the goal of net zero emissions by 2050, the International Energy Agency estimates that global biofuel production will need to triple by 2030. India, in its ambitious energy transition journey, has committed to achieving carbon neutrality by 2070 and has set an ambitious biofuel roadmap. The government has accelerated its target to achieve 20% ethanol blending in petrol by 2025-26, surpassing its earlier target of 2030. Notably, the target of petrol supplies with 10% ethanol blending was achieved in June, a few months ahead of the original schedule of November 2022.

In conclusion, the Global Biofuels Alliance (GBA) faces significant challenges, including technology transfer, sustainable funding, import restrictions, and environmental concerns, hindering its expansion and fostering sustainable biofuel development. To overcome these hurdles and achieve net-zero emissions, the GBA must leverage proactive diplomacy, diverse funding strategies, advocacy for trade liberalization, and a commitment to environmental sustainability. These measures will enable the GBA to continue leading the way towards a greener and more sustainable global energy future.