G20 Summit: India, US, Brazil in global biofuel push
The biofuel alliance is expected to boost demand for biofuel, enhance its trade and encourage its production through newer methods
NEW DELHI: Prime Minister Narendra Modi on Saturday announced the launch of a global biofuel alliance with the US and Brazil as other founding members; the pact that is meant to boost the use of cleaner fuels.
Biofuels include those derived from biomass such as sugarcane (like ethanol), which are considered renewable unlike petrol or natural gas that is derived from fossils. The alliance is expected to boost demand for biofuel, enhance its trade and encourage its production through newer methods.
“We are launching the Global Biofuel Alliance. India invites all of you to join this initiative,” Modi said in his remarks to leaders at the Group of 20 (G20) major economies at the summit.
India imports 87% of its crude oil requirements, and the blending of more biofuels in conventional ones has helped it drastically cut its import reliance.
Still, the issue is such that the country’s crude oil import bill in 2022-23 was $157.6 billion, about 31% more from the previous financial year.
The push for a biofuels alliance mirrors the International Solar Alliance launched by New Delhi and Paris in 2015 to bring clean and affordable solar energy within the reach of all.
The International Energy Agency estimates in a July report that global sustainable biofuels production would need to triple by 2030 to put the world’s energy system on track towards net zero emissions by 2050.
“The alliance will help accelerate India’s existing biofuels programs such as PM-JIVAN Yojana, SATAT, and GOBARdhan scheme, which will help in raising farmers’ income, creating jobs and overall development of the Indian ecosystem,” said a government statement.
Brazil, India, and the US are leading biofuel producers and consumers, and have played a key role in the development of a Global Biofuel Alliance along with other interested countries.
The alliance is aimed at facilitating cooperation and intensifying the use of sustainable biofuels, including in the transportation sector. It will focus on strengthening markets, facilitating global biofuels trade, development of policy lesson-sharing and provision of technical support for national biofuels programs worldwide.
It will also emphasize the already implemented best practices and success cases according to a statement issued by the ministry of petroleum & natural gas on February 11.
The Alliance will work in collaboration with international agencies as well as initiatives in the bioenergy, bioeconomy, and energy transition including the Clean Energy Ministerial Biofuture Platform, the Mission Innovation Bioenergy initiatives, and the Global Bioenergy Partnership (GBEP).
According to a report by the International Energy Agency titled ‘Biofuel Policy in Brazil, India and the United States Insights for the Global Biofuel Alliance,’ released in July, global biofuel growth through 2028 is running at less than half the rate needed to help achieve net zero emissions by mid-century based on current policies and market trends.
In the IEA’s Net Zero Emissions by 2050 (NZE) Scenario, sustainable biofuel production needs to triple by 2030 to help reduce emissions from new and existing trucks, planes, ships and passenger vehicles that have few other mitigation options.
Over 80% of global production is concentrated in just four markets: the United States, Brazil, Europe and Indonesia. These markets account for only half of global transport fuel demand. Brazil, India and the United States have deployed policies which sustained annual growth rates above 20% over at least a five-year period. As a result, biofuels provided 22% of Brazil’s and 7% of the United States transport energy in 2022. In India, ethanol’s share of energy use in gasoline vehicles reached 6% in 2022, double 2019 levels.
Biofuels offer numerous advantages according to the IEA.
Liquid biofuels in 2022 saved the use of nearly 2 million barrels of oil per day in the transport sector, over 4% of global transport demand, helping secure energy supplies during the energy crisis. Biofuels are also compatible with existing infrastructure, can be made using wastes and residues and offer economic and employment opportunities for rural communities.
In this context, on the sideline of the Energy Transitions Ministerial meeting, consultations for the Global Biofuels Alliance also took place on July 22 in Goa.
This consultation received strong support from countries within and beyond the G20. Around 19 countries expressed their interest in being the initiating members of the alliance
During the meeting in Goa, the International Civil Aviation Organization (ICAO) emphasized that more than 600 billion litres of sustainable aviation fuel is required to replace all fossil fuels, translating into more than $ 3 trillion in investment by 2050. The World Biogas Association had highlighted that only 2% of waste is being recycled currently and absence of recycling to consumable products is contributing to methane emissions.
On July 11, Hardeep Singh Puri, Union minister of Petroleum and Natural Gas and Housing and Urban Affairs said at Hindustan Times’ event on sustainable development goals and biofuels that based on the experience of achieving 10% ethanol blending, five months in advance of the goal, the Centre has decided to advance the deadline for achieving 20% ethanol blending (E20) from 2030 to 2025.
Around 1,350 petrol pumps in the country are already selling E20 fuel, he said.
The government is also considering a policy on 1% blended aviation fuel based on their experience with using 1% indigenous sustainable aviation fuel for a Pune to Delhi flight in May, the minister added.
