At the recently held G20 Summit, Indian prime minister announced the Global Biofuel Alliance (GBA). This initiative will bring together governments, international organisations, and industry to promote the adoption of biofuels. The project, which brings together the largest producers and users of biofuels, intends to present biofuels as a key to the energy transition while encouraging employment and economic growth.
By providing exercises to build capacity across the value chain, providing technical assistance for national programs, and encouraging the sharing of policy insights, GBA will help the development and implementation of sustainable biofuels on a global scale. It will make it easier to mobilise a virtual market to help sectors, nations, ecosystem participants, and key stakeholders map demand and supply and link technology providers and end users. In order to encourage the use and trading of biofuels, it will also make it easier to establish, adopt, and apply internationally recognised standards, codes, sustainability principles, and regulations.
India will gain from the initiative in a number of ways. First, it will improve India’s position internationally. Second, the alliance will emphasise cooperation and give Indian firms greater opportunities for exporting technology and other goods. It will aid in accelerating India’s current biofuels initiatives, like the PM-JIVANYojna, SATAT, and GOBARdhan plan, which will raise farmers’ incomes, generate jobs, and advance India’s ecosystem as a whole. Third, the market for ethanol worldwide was estimated at USD 99.06 billion in 2022 which is expected to reach USD 162.12 billion after expanding at a CAGR of 5.1 per cent by 2032. Furthermore, according to the IEA, the net zero targets will boost the growth potential of biofuels by three to five times by 2050, providing India with a tremendous opportunity.
The seven G20 nations that support GBA are: Argentina, Brazil, Canada, India, Italy, USA, South Africa. While the international organisations supporting the initiative includes: World Bank, Asian Development Bank, World Economic Forum, World LPG Organisation, UN Energy for All, UNIDO, Biofutures Platform, International Civil Aviation Organisation, International Energy Agency, International Energy Forum, International Renewable Energy Agency, World Biogas Association.