India Launches the Global Biofuels Alliance at G20 Summit
On 9 September 2023 at the #G20 Summit, Indian PM Narendra Modi officially unveiled the Global Biofuels Alliance (GBA) as part of the efforts in the fight against #ClimateChange. The official launch comes after Indian oil minister Hardip Puri made the proposal in July 2023.
The founding member countries of the #GBA are: Argentina, Brazil, Canada, Italy, South Africa, USA as well as the four G20 invitee countries: Bangladesh, Mauritius, Singapore, UAE. Another eight non-G20 countries also support the GBA: Finland, Guyana, Kenya, Iceland, Paraguay, Seychelles, Sri Lanka and Uganda.
In addition, twelve international organizations also back the Alliance: Asian Development Bank, Biofutures Platform, International Civil Aviation Organization, International energy Agency, International Energy Forum, International Renewable Energy Agency, World Bank, World Biogas Association, World Economic Forum, World LPG Organization, UN Energy for All and UNIDO.
Put together, the USA (52%), Brazil (30%) and India (3%) account for 85% of the global production of ethanol. Although India’s share is much smaller compared to the top two players, it ambitions to significantly increase its capacity in the years ahead.
“India is now the world’s 3rd largest producer and user of ethanol thanks to nearly tripling production in the past five years.”
Indian Oil Minister Hardip Purification
According to the International Energy Agency (IEA), the world must triple its production of biofuels by 2030 in order to meets its #decarbonization targets. The transport sector which relies heavily on highly polluting fossil fuels account for more than 20% of total emissions, with land vehicles making up almost 75% of the total. The transport sector is the 2nd most polluting industry after the energy sector, which includes power generation hydrocarbons and heat used for heating.
In the case of India, a 10% ethanol mix is currently in use and the proportion of bioethanol is set to increase to 20% soon. India imports nearly 85% of its petroleum needs and thus the promotion of biofuels is central to its #EnergySecurity and success towards #NetZero.
The global ethanol market was estimated to nearly USD 100 billion in 2022 and is predicted to undergo a compounded annual growth rate (CAGR) of at least 5% over the next decade. The market size will exceed USD 150 billion by 2030.
Therefore, the GBA aims to promote cooperation in biofuel technologies and accelerate the adoption of clean and renewable alternatives to fossil fuels. Biofuels could be another tool to mitigate #GlobalWarming and will complement #EV and hydrogen.