Under India’s G20 Presidency, Prime Minister Narendra Modi launched the Global Biofuel Alliance on September 9, gathering support from 19 countries and international organisations.
The Global Biofuel Alliance, first proposed at India Energy Week in February, was one of the priorities of the Indian government at the G20 Summit.
In this explainer, Moneycontrol looks at the goals of the alliance and the response of Indian companies.
What are biofuels and why are they getting so much importance?
Biofuels, or bio-energy, are a form of energy generated from organic and agricultural materials known as biomass. Biofuels help in reducing emissions and have gained worldwide popularity, contributing to meeting net zero carbon emission targets.
For India, biofuels also help in reducing energy imports, on which the country depends for a large part of its oil and natural gas requirements.
What is the Global Biofuel Alliance (GBA)?
The India-proposed GBA is an initiative to develop an alliance of governments, international organisations and industry to facilitate the adoption of biofuels.
It brings together the biggest consumers and producers of biofuels to drive its development and deployment, and position biofuels as a key to energy transition.
Petroleum minister Hardeep Singh Puri said the world’s quest for cleaner and greener energy has gained historic momentum with the launch of the GBA.
Which countries have joined the alliance?
Nineteen countries and 12 international organisations have joined the GBA. Among them are Brazil, the US, Canada, Italy, South Africa, Argentina and India. Non-G20 countries including Bangladesh, Singapore, and Iceland have agreed to become a part of the alliance.
International organisations such as the World Bank, the World Economic Forum, and the International Energy Agency have also joined.
Three members—Brazil, India and the US—contribute about 85 percent of the world’s biofuel production. The US contributes 52 percent, while Brazil and India account for 30 percent and 3 percent, respectively.
What is the GBA’s objective?
The alliance will support the development of biofuels by offering capacity-building exercises across the value chain, provide technical support for national programmes and promote sharing of policy lessons.
The government said the GBA will facilitate mobilising a virtual marketplace to assist industries, countries, ecosystem players and key stakeholders in mapping demand and supply, as well as connecting technology providers to users. The alliance will act as a central repository of knowledge and an expert hub.
How have Indian companies reacted?
Companies including Indian Oil Corporation, Bharat Petroleum and GAIL (India) expressed optimism the alliance would help in creating a greener future.
“Besides Boosting India's Existing Biofuel programs, GBA is also creating income opportunities for farmers, reducing carbon emissions, increasing energy security, and developing a robust Indian ecosystem,” Bharat Petroleum said on microblogging site X.
Many companies in India are working towards setting up compressed biogas (CBG) plants. Reliance Industries, which recently became India’s largest bio-energy producer, plans to establish 100 CBG plants in the next five years, consuming 5.5 million tonnes of agro-residue and organic waste.
Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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