India Launches Global Biofuel Alliance at G-20 to Reduce Emissions and Boost Ethanol Adoption
New Delhi: India has taken a significant step towards reducing emissions and promoting the adoption of biofuels by launching the Global Biofuel Alliance at the recently held Group of 20 (G-20) leaders meeting. The alliance, which includes major producers such as Brazil and the United States, has been a key priority for India during its G-20 presidency. Indian Prime Minister Narendra Modi urged G-20 members to collaborate on this initiative, as India aims to increase the ethanol blend in gasoline to 20%.
This alliance marks India’s second major global initiative on green energy, following the launch of the International Solar Alliance in 2015. It is expected to further enhance Modi’s reputation as a global climate leader. Under Modi’s leadership, India has made remarkable progress in renewable energy capacity addition. However, the country still resists calls for reducing coal usage due to its growing energy demands.
The Global Biofuel Alliance will play a crucial role in developing a global market for biofuel trade. Biomass-derived fuels can serve multiple purposes for India. India intends to learn from Brazil’s experience in running vehicles on blended ethanol, and it also plans to utilize crop waste pellets as a substitute for coal in its power plants. By converting biomass into fuel, India can effectively address the issue of crop burning, which contributes to heavy smog and air pollution in northern India during harvest season.
Blending ethanol with conventional fuels reduces India’s reliance on crude oil, a major component of its import bill. Currently, refiners like Indian Oil and Bharat Petroleum Corp. blend 12% ethanol in gasoline, but the government aims to increase this to 20% by 2025. Federal Oil Minister Hardeep Puri, who previously served as India’s ambassador to Brazil, is leading the push for higher ethanol blending.
Globally, the use of biofuels has already resulted in a reduction of 2 million barrels of oil equivalent per day in 2022. This is equivalent to 4% of the global transport sector’s oil demand, according to the International Energy Agency. Notably, emerging markets like Brazil, India, and Indonesia have saved $38 billion in import costs through local biofuel production.
The launch of the Global Biofuel Alliance demonstrates India’s commitment to combatting climate change and reducing emissions. With the support of top producers and collaborative efforts among G-20 members, this alliance is poised to enhance biofuel adoption worldwide. As India strives to increase its ethanol blend and effectively utilize biomass, it takes a significant step towards a greener and sustainable future.
