PM Modi launches Global Biofuels Alliance at Summit

New Delhi: On the inaugural day of the G20 Leaders’ Summit in New Delhi on Saturday, Indian Prime Minister Narendra Modi made an announcement, unveiling the Global Biofuels Alliance (GBA) — an initiative, spearheaded by India, signifies a pivotal moment in the global energy sector. The GBA aims to foster collaboration among governments, international organisations, and industry leaders to accelerate the widespread adoption of biofuels.

India’s role as the G20 President is underscored by this announcement, emphasising the nation’s dedication to represent the interests of the “Voice of the Global South,” as stated by the Ministry of Petroleum and Natural Gas. At its core, the GBA seeks to position biofuels as a central element in the ongoing global energy transition, with a strong emphasis on job creation and economic growth. This initiative unites the world’s largest biofuel consumers and producers to drive the development and deployment of biofuels on a global scale.

As of the latest update, a total of 19 countries and 12 international organisations have pledged their commitment to the GBA. Among the G20 countries, Argentina, Brazil, Canada, India, Italy, South Africa, and the USA stand as strong supporters. G20 invitee nations Bangladesh, Singapore, Mauritius, and the UAE have also thrown their support behind this initiative. Notably, eight non-G20 countries, including Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda, and Finland, have taken proactive steps to become founding members of the GBA. International organisations, such as the World Bank, Asian Development Bank, World Economic Forum, and others, are actively participating.

Collectively, the GBA’s membership represents major producers and consumers of biofuels. With the USA, Brazil, and India significantly contributing to both production and consumption, these nations account for approximately 85 percent of global biofuel production and 81 percent of ethanol consumption.

“The launch of the Global Biofuels Alliance marks a watershed moment in our quest towards sustainability and clean energy. I thank the member nations who have joined this Alliance,” the prime minister said.

The GBA is strategically poised to support the sustainable development and deployment of biofuels globally through a range of key strategies. This includes offering comprehensive capacity-building exercises across the entire biofuels value chain. Furthermore, the alliance will provide technical support to national biofuel programs, facilitating their efficient implementation.

The GBA is set to facilitate the exchange of policy insights, encouraging nations to learn from each other’s successes in adopting biofuels. To galvanise the global biofuels industry, the alliance will establish a virtual marketplace that connects stakeholders, maps supply and demand, and links technology providers with end-users, as highlighted by the Indian government.

Additionally, the GBA will play a pivotal role in developing, adopting, and implementing internationally recognised standards, codes, sustainability principles, and regulations to incentivise the adoption and trade of biofuels.

For India, the GBA represents a wealth of opportunities on multiple fronts. As a tangible outcome of its G20 presidency, it fortifies India’s global standing. Furthermore, the alliance opens doors to collaboration and potential exports of technology and equipment for Indian industries. This initiative aligns seamlessly with India’s existing biofuel programs, such as PM-JIVAN Yojna, SATAT, and the GOBARdhan scheme, which collectively contribute to increased farmers’ income, job creation, and overall ecosystem development.

The timing of this initiative couldn’t be more opportune. The global ethanol market, valued at $99.06 billion in 2022, is predicted to experience a robust Compound Annual Growth Rate (CAGR) of 5.1 percent by 2032, ultimately surpassing $162.12 billion. Furthermore, according to the International Energy Agency (IEA), biofuels exhibit 3.5-5 times growth potential by 2050 due to Net Zero targets, presenting a significant opportunity not only for India but also for other GBA member nations.

Prime Minister Modi emphasised that the establishment of the Global Biofuels Alliance (GBA) marks a significant stride toward a sustainable and renewable energy future. This initiative not only underscores India’s leadership but also highlights the global commitment to a greener and more sustainable energy landscape, ensuring a brighter future for generations to come.