Explained: How Global Biofuels Alliance Will Help India
The alliance aims to ensure the reliable and affordable supply of biofuels.
New Delhi:
A Global Biofuels Alliance to promote the use of sustainable biofuels was launched by Prime Minister Narendra Modi at the G20 Summit in New Delhi this weekend. PM Modi called on countries to join the alliance and set a global target of blending 20% ethanol with petrol.
India is increasing its production capacity of biofuels, a renewable energy source produced from organic matter. The country imports more than 85% of its crude oil requirements, so it is looking to reduce its reliance on imported oil by producing biofuels from domestic sources.
What is The Global Biofuels Alliance?
The alliance was launched to develop an alliance of governments, international organisations, and industries to promote the adoption of biofuels. The alliance aims to ensure the reliable and affordable supply of biofuels, while promoting sustainable production methods.
In 2009, developed countries pledged to provide $100 billion per year by 2020 to help developing countries combat climate change. However, this promise was not fulfilled. The agreement on the Global Biofuels Alliance during India’s presidency of the G20, as the world’s third-largest oil consumer, is therefore seen as a significant moment for the country, which is being hailed as the voice of the Global South.
The Global Biofuels Alliance mirrors the International Solar Alliance which was launched in 2015 by India and 120 signatory countries in Paris. The ISA’s main aim is to bring clean and affordable solar energy within the reach of everyone. Similarly, the biofuels alliance will work toward providing biofuels
How It Will Benefit India
The launch of the Global Biofuels Alliance is a significant milestone in the global effort to end reliance on fossil fuels. For India, which imports more than 85% of its crude oil, the alliance presents an opportunity to reduce not just the cost of importing oil but also its reliance on oil and gas. The workings of this alliance will also help mitigate the challenges posed by climate change.
“The Biofuel Alliance is a win-win situation for Atmanirbhar Bharat. It will help to reduce air pollution, create jobs, and make India a leader in the production and use of biofuels. The alliance is also aligned with India’s goal of becoming a carbon-neutral country by 2070,” Union Minister Nitin Gadkari told NDTV recently.
India aims to blend 20% ethanol extracted from sugarcane and agricultural waste with petrol by 2025 and is also simultaneously setting up dozens of compressed biogas (CBG) plants.
The Global Biofuels Alliance will accelerate India’s existing biofuels programmes, such as the Sustainable Alternative Towards Affordable Transportation (SATAT) programme – an initiative aimed at setting up compressed biogas production plants, and the Gobardhan scheme which converts waste products to clean energy. This will help to increase farmers’ incomes, create jobs, and boost the overall development of the Indian ecosystem.
The global ethanol market is projected to grow from $99.06 billion in 2022 to $162.12 billion by 2032, at a compound annual growth rate (CAGR) of 5.1%.
