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by Focusing on the global dynamics of climate and energy politics, the energy transition isn't just a necessity—it's a catalyst for job creation and economic growth. The Global Biofuel Alliance, unveiled during India’s G20 presidency, stands as a cornerstone for driving a sustainable energy revolution and redefining the future of clean energy worldwide.
The alliance is one of a kind that spans 19 countries and 12 international organisations including the World Economic Forum, the World Bank and the Asian Development Bank – to try to expand the use of sustainable biofuels.
The launch meeting of the Global Biofuels Alliance
A C&EP Commentary by Albin K S | Edited by Manini Agarwal | Research and Publications Division
Pioneering a Sustainable Energy Revolution
Considering the profound demand for oil and minerals especially in the transportation sector where electric vehicles are still not able to replace the liquid fuels, the demand for biofuels are seen as a catalyst for reducing the dependence on oil demands. Quoting from the International Energy Agency, biofuel demand in the global landscape is projected to increase by 2028. Taken as an initiative by India and eight other countries including USA and Brazil, the GBA aims to create the global dependence on sustainable biofuels as an alternative to fossil fuels which are climate friendly in nature.
The alliance is intended to adhere to the sustainable principles and facilitate development through internationally recognized standards and regulations to encourage biofuel adoption and trade. The need for an alliance is pertinent aimed at facilitating cooperation and propelling the use of sustainable biofuels especially in the transportation sector. There is an increasing emphasis on strengthening markets, promoting the global biofuel trade and provision of technical support for national biofuels programs worldwide.
Global Biofuel Alliance is set to work collaboratively, strengthening and complementing the existing regional, international agencies as well as initiatives in the field of bioenergy, bioeconomy and energy transition field including the Clean Energy Ministerial Biofuture Platform, the Mission Innovation Bioenergy initiatives, and the Global Bioenergy Partnership (GBEP).
India and GBA - Potential Gains and Future Out course
The Global Biofuel Alliance (GBA) has adopted a work plan focused on assessing country landscapes, drafting policy frameworks, and conducting biofuel workshops, petroleum and natural gas ministry officials said. The India-led initiative has seen 24 countries signing up so far, with special interest generated among African nations. Apart from G20 member South Africa, non-G20 nations like Kenya and Uganda are on the list, while Tanzania is keen on joining, sources said.
“India has also put forward three potential workstreams to support biofuel trade, increase awareness in biofuels, and identify support mechanisms for enhanced adoption of biofuels”.
Global Engagements: Building up the objectives and plans of GBA to a global perspective is prioritized. India helping lower and middle income countries also start their biofuels programme. As per the International Energy Agency (IEA), biofuels have a potential to grow by 3.5-5-times by 2050 due to Net-Zero targets, creating a huge opportunity for India.
Production: By harnessing the abundant biomass resources as CBG plant feedstock, India could achieve an impressive daily CBG production capacity of 170,000 MT. This capacity increase could potentially replace one-third of crude oil imports or triple the imported LNG.
Revenue: The average cost of a biogas plant is US$4.25 million, per industry estimates, and the government’s target of establishing 5,000 such plants represents an enormous opportunity for foreign stakeholders, valued at over US$200 billion.
In its report titled “Biofuel Policy in Brazil, India and the United States: Insights for the Global Biofuel Alliance”, released last year, the IEA recommended that the GBA should focus on developing new and existing markets, since over 80% of the production is concentrated in four regions—the US, Brazil, Europe and Indonesia—that account for only half of the global transport fuel demand.
Member countries- Contribution of major member countries and their strategic roots in the global political landscape
The alliance brings together 19 countries and 12 international organizations. This includes the US and Brazil – the world’s biggest and second-biggest biofuels producers, respectively – as well as Singapore, Argentina, South Africa and the United Arab Emirates (UAE).
Brazil: “Brazil has come up with the tools to view and assess the biofuel potential of those regions where there has been no development so far on that front. Brazil's 2024 G20 presidency offers a key opportunity to embed biofuels in the global energy transition framework.
As G20 president, Brazil has the potential to leverage its renewable energy expertise and strong biofuel sector to lead the global energy transformation agenda, amplifying biofuel adoption worldwide.
United States: In line with the renewed push to enhance biofuel use and production, the U.S. announced its latest amended “Renewable Fuel Standard” to substantially increase the production of biofuels and substitute about 1,40,000 barrels per day of crude oil imports by 2025.
India: India had announced the setting up of 12 new refineries as early as 2018 with the aim to meet 20% ethanol blending by 2025. Moreover, this becomes significant as India's announcement to become net zero removing as much carbon from the atmosphere as human activity emits) by 2070.
The IEA predicts that about two-thirds of the global biofuel demand will come from three emerging economies – India, Brazil and Indonesia, where “ample domestic feedstocks, additional production capacity, relatively low production costs and a package of policies can leverage to increase demand.
Major Concerns In Place
Considering the situation that major crude producers and consumers like China, Russia, and Saudi Arabia have not joined, the GBA must tread carefully. The alliance should not solely be restrained to its member countries, instead should leverage and reach out to non-member countries, where bioenergy can offer a cheaper and more competitive pathway to net-zero, job creation, and rural income generation.
Conclusion:The Way Forward
The Global Biofuel Alliance (GBA) represents a critical step toward addressing the global energy transition challenges, particularly in the transportation sector, where sustainable alternatives to fossil fuels are imperative. By fostering international collaboration among 19 countries and 12 organizations, the GBA aims to promote biofuel adoption through policy frameworks, market development, and technical support. The alliance underscores the importance of biofuels as a viable, eco-friendly alternative to meet the growing energy demands while reducing dependency on crude oil.
India, as a key proponent, has demonstrated its commitment by setting ambitious biofuel production targets and leveraging its vast biomass resources. Meanwhile, countries like Brazil and the U.S. contribute their expertise and robust biofuel industries to advance the global agenda. However, challenges persist, especially with major players like China and Russia, being absent from the alliance. Expanding outreach and fostering partnerships with non-member nations remain essential for achieving broader adoption and equitable growth.
By prioritizing innovation, inclusive participation, and sustainability, the GBA has the potential to redefine the global energy landscape. It must continue its mission to facilitate a unified, resilient approach to the energy transition, ensuring economic prosperity, environmental preservation, and energy security for all.
References
Eco-Business. (n.d.). Explainer: What is the Global Biofuel Alliance? Retrieved January 4, 2025, from https://www.eco-business.com/news/explainer-what-is-the-global-biofuel-alliance/?utm_medium=email&_hsmi=276865713&utm_content=276865713&utm_source=hs_email
International Energy Agency (IEA). (2023). Renewables 2023: Analysis and forecast to 2028. Retrieved from https://iea.blob.core.windows.net/assets/96d66a8b-d502-476b-ba94-54ffda84cf72/Renewables_2023.pdf
Press Information Bureau (PIB). (n.d.). Global Biofuel Alliance sets up three-pronged work plan, says government. Retrieved January 4, 2025, from https://pib.gov.in/Pressreleaseshare.aspx?PRID=1898274
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Livemint. (n.d.). India signing headquarters deal with Global Biofuels Alliance paves way for its diplomatic, international organisation status. Retrieved January 4, 2025, from https://www.livemint.com/global/india-signing-headquarters-deal-with-global-biofuels-alliance-paves-way-for-its-diplomatic-intl-organisation-status-11721212166289.html
Observer Research Foundation (ORF). (n.d.). Towards leadership on sustainable fuels: The Global Biofuels Alliance and India. Retrieved January 4, 2025, from https://www.orfonline.org/expert-speak/towards-leadership-on-sustainable-fuels-the-global-biofuels-alliance-and-india
SolarQuarter. (2024, July 18). Brazil leads the way: A beacon for global clean energy transition with 90% renewable energy. Retrieved from https://solarquarter.com/2024/07/18/brazil-leads-the-way-a-beacon-for-global-clean-energy-transition-with-90-renewable-energy/
The Hindu. (2023). What is driving the Global Biofuels Alliance? Explained. Retrieved from https://www.thehindu.com/sci-tech/energy-and-environment/what-is-driving-the-global-biofuels-alliance-explained/article67316151.ece
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