GBA will support worldwide development and deployment of sustainable biofuels by offering capacity-building exercises across the value chain.

Andalib Akhter / NEW DELHI

Taking one more step towards climate leadership, Prime Minister Narendra Modi today announced the formation of the Global Biofuels Alliance (GBA) on the sidelines of the G20 Summit.

The global alliance will promoting biofuels adoption at the Group of 20 leaders meeting aimed at reducing emissions in the transportation and industrial sectors.

The Global Biofuel Alliance, which include top producers Brazil and the US, has been one of India’s key priorities for the G-20 presidency. Prime Minister Narendra Modi urged G-20 nations to collaborate on the fuel-blending initiative as the South Asian nation aspires to increase ethanol mix in gasoline to as much as 20%.

GBA will support worldwide development and deployment of sustainable biofuels by offering capacity-building exercises across the value chain, technical support for national programs and promoting policy lessons-sharing. It will facilitate mobilizing a virtual marketplace to assist industries, countries, ecosystem players and key stakeholders in mapping demand and supply, as well as connecting technology providers to end users. It will also facilitate development, adoption and implementation of internationally recognized standards, codes, sustainability principles and regulations to incentivize biofuels adoption and trade.

The initiative will be beneficial for India at multiple fronts. GBA as a tangible outcome of the G20 presidency, will help strengthen India’s position globally. Moreover, the alliance will focus on collaboration and will provide additional opportunities to Indian industries in the form of exporting technology and exporting equipment.

It will help accelerate India’s existing biofuels programs such as PM-JIVANYojna, SATAT, and GOBARdhan scheme, thereby contributing to increased farmers’ income, creating jobs and overall development of the Indian ecosystem. The global ethanol market was valued at USD 99.06 billion in 2022 and is predicted to grow at a CAGR of 5.1% by 2032 and surpass USD 162.12 billion by 2032. As per IEA, there will be 3.5-5x biofuels growth potential by 2050 due to Net Zero targets, creating a huge opportunity for India.

This is the second major global initiative on green energy pioneered by India after the launch of International Solar Alliance in 2015 and is expected to boost Modi’s credentials as global climate leader. During Modi’s nine-year tenure, India added renewable capacity at a record pace, but still pushes back on coal phase-down demands, citing its growing energy needs.

The global alliance will help build the worldwide market in biofuel trade, and fuels obtained from biomass could serve multiple purposes for India. India wants to tap into Brazil’s experience in running vehicles on blended ethanol, and it can use pellets made of crop waste to displace a certain amount of coal in its power plants.

“Turning biomass into fuel will help India use tons of crop waste that farmers are currently forced to burn every harvest season, enveloping much of northern India in smog for weeks” says senior Journalist Salahuddin who works for DW.

Adding ethanol to conventional fuels reduces the need for crude oil, the biggest component of India’s import bill. Refiners, such as Indian Oil and Bharat Petroleum Corp. currently mix 12% ethanol in gasoline, and the government plans to raise the target to 20% blending by 2025.

Globally, the use of biofuels reduced the consumption of 2 million barrels of oil equivalent per day in 2022, equivalent to 4% of the global transport sector oil demand, according to the International Energy Agency. Local production in emerging markets, mainly Brazil, India and Indonesia, saved $38 billion of import costs.

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Countries and organizations which have already joined GBA

19 countries and 12 international organisations have already agreed to join. G20 countries (07) supporting GBA: 1. Argentina, 2. Brazil, 3. Canada, 4. India 5. Italy, 6. South Africa, 7..USA
G20 Invitee Countries (04) supporting GBA: 1. Bangladesh, 2. Singapore, 3. Mauritius, 4. UAE
Non G20 (08) supporting GBA: 1. Iceland, 2. Kenya, 3. Guyana, 4. Paraguay, 5. Seychelles, 6. Sri Lanka, and 7. Uganda have agreed to be initiating members of GBA, and 8. Finland
International organizations (12): World Bank, Asian Development Bank, World Economic Forum, World LPG Organization, UN Energy for All, UNIDO, Biofutures Platform, International Civil Aviation Organization, International Energy Agency, International Energy Forum, International Renewable Energy Agency, World Biogas Association.
GBA Members constitute major producers and consumers of biofuels. USA (52%), Brazil (30%) and India (3%), contribute about 85% share in production and about 81% in consumption of ethanol.