The Global Biofuels Alliance (GBA) was announced recently. This happened at the G20 meeting held in New Delhi in September 2023. The GBA has support from G20 countries and various organizations like IAE, ICAO, WEF, and the World LPG Foundation.
The GBA is a union of biofuel producers and consumers. Its aim is to boost the global trade of biofuels. This is a step towards a greener and more sustainable future. The GBA will also ensure energy is secure, affordable, and accessible. It will do this by promoting global teamwork to develop and use sustainable biofuels.
- The GBA’s main goal is to promote cooperation among nations. They aim to fast-track biofuel technology and its use, particularly in transport.
- Members of the alliance include India, the United States, Brazil, Argentina, Canada, Italy, and South Africa. All these countries are part of the G-20.
- GBA provides support through various means. These include capacity-building activities, technical aid for national schemes, and sharing of policy ideas.
- The alliance also sets up a virtual marketplace. This platform helps industries, nations, and stakeholders understand supply and demand. It also links tech providers with users.
- GBA puts great emphasis on developing and implementing global standards, codes, and sustainability principles. It also regulates biofuel use and trade to encourage its adoption.
GBA Will Be Beneficial For India At Multiple Fronts
The G20 presidency has resulted in the Global Biofuel Alliance (GBA), which strengthens India’s global position. This alliance, focusing on cooperation, offers new opportunities to Indian industries to export technology and equipment. It will also speed up India’s existing biofuels programs such as PM-JIVANYojna, SATAT, and GOBARdhan scheme. This will result in higher earnings for farmers, more job opportunities, and overall growth for India.
The global ethanol market, worth USD 99.06 billion in 2022, is expected to grow at a rate of 5.1% and reach a value of USD 162.12 billion by 2032. The International Energy Agency (IEA) predicts that biofuels have the potential to grow 3.5 to 5 times by 2050 due to Net Zero targets. This presents a significant opportunity for India.
The USA, Brazil, and India are the biggest producers and users of biofuels. Together, they make up 85% of global ethanol production and 81% of usage. The global market for ethanol was valued at 99 billion USD in 2022. It’s expected to grow by 5% each year until 2032. This growth could be a big chance for Indian industries to develop and for farmers to earn more.
Currently, fossil fuels meet about 98% of India’s fuel needs for transportation. Only 2% comes from biofuels. In 2020-2021, India spent around 55 billion dollars importing petroleum.
The recent war between Russia and Ukraine has made global oil prices go up. This means India has to pay even more to import oil and gas. By mixing ethanol with gasoline up to 20%, India could save around 4 billion dollars.
Indian Oil Manufacturing Companies (OMCs) in India are taking actions to set up new distilleries for the production of first and second generation ethanol. At the same time, Indian vehicle makers are creating engines that can run on ethanol mixed fuel.
The government is encouraging ethanol production by providing a scheme that reduces interest for molasses and grain-based distilleries. The future may also see flex fuel vehicles in India. These vehicles can use up to 85% ethanol-blended gasoline and are already in use in countries like the USA and Brazil.