What is Global Biofuels Alliance launched on the sidelines of the G20 Summit in India

In a historic move in the global energy sector, Indian Prime Minister Narendra Modi along with the leaders of Singapore, Bangladesh, Italy, USA, Brazil, Argentina, Mauritius and UAE, launched the Global Biofuels Alliance on 9 September 2023, on the sidelines of the G20 Summit in New Delhi.

Global Biofuels Alliance is an India-led Initiative to develop an alliance of Governments, International organisations and Industry to facilitate adoption of biofuels. Bringing together the biggest consumers and producers of biofuels to drive biofuels development and deployment, the initiative aims to position biofuels as a key to energy transition and contribute to jobs and economic growth.

The alliance will also act as a central repository of knowledge and an expert hub. Global Biofuels Alliance aims to serve as a catalytic platform, fostering global collaboration for the advancement and widespread adoption of biofuels.

Global Biofuels Alliance will support worldwide development and deployment of sustainable biofuels by offering capacity-building exercises across the value chain, technical support for national programnes and promoting policy lessons-sharing.

It will facilitate mobilising a virtual marketplace to assist industries, countries, ecosystem players and key stakeholders in mapping demand and supply, as well as connecting technology providers to end users. It will also facilitate development, adoption and implementation of internationally recognised standards, codes, sustainability principles and regulations to incentivize biofuels adoption and trade.

Benefits for India

The initiative will be beneficial for India at multiple fronts. The alliance as a tangible outcome of the G20 presidency, will help strengthen India’s position globally. Moreover, the alliance will focus on collaboration and will provide additional opportunities to Indian industries in the form of exporting technology and exporting equipment.

It will help accelerate India’s existing biofuels programmes such as PM-JIVANYojna, SATAT, and GOBARdhan scheme, thereby contributing to increased farmers’ income, creating jobs and overall development of the Indian ecosystem.

The global ethanol market was valued at USD 99.06 billion in 2022 and is predicted to grow at a Compound annual growth rate of 5.1% by 2032 and surpass USD 162.12 billion by 2032. As per International Energy Agency (IEA), there will be 3.5-5x biofuels growth potential by 2050 due to Net Zero targets, creating a huge opportunity for India.

Participating Nations and Organisations

A total of 19 countries and 12 international organisations have agreed to join the alliance.

Countries supporting the alliance include Argentina, Brazil, Canada, India, Italy, South Africa, USA, Bangladesh, Singapore, Mauritius, UAE, Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda and Finland.

International organisations supporting the alliance include World Bank, Asian Development Bank, World Economic Forum, World LPG Organization, UN Energy for All, UNIDO, Biofutures Platform, International Civil Aviation Organization, International Energy Agency, International Energy Forum, International Renewable Energy Agency, World Biogas Association.

Global Biofuels Alliance Members constitute major producers and consumers of biofuels. USA (52%), Brazil (30%) and India (3%),  contribute about 85% share in production and about 81% in consumption of ethanol.

India says

Informing about the alliance, Hardeep Singh Puri, Minister of Petroleum & Natural Gas and Housing & Urban Affairs posted on X (formerly Twitter): “The world’s quest for cleaner & greener energy gains historic momentum! On a momentous occasion PM Shri @narendramodi Ji launches #GlobalBiofuelsAllianceAtG20 with the support of 19 major consumer, producer & interested countries & 12 organisations on sidelines of #G20India today!”

Reacting to his post, PM Modi shared, “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.”

Brazil says

“The Global Biofuels Alliance is an important milestone at the G20 meeting. Brazil is a pioneer in this segment. It is very important for our future. The world is seeing the importance of biofuels, to replace polluting fuels that accelerate the climate crisis,” expressed Brazilian President Lula da Silva to whom PM Modi handed over the G20 Presidency gavel.