G20 Summit: Global Biofuels Alliance Launched by PM Modi

G20 Summit: On September 9, India made a significant announcement by inaugurating the Global Biofuel Alliance and extended an invitation to G-20 nations to participate in this initiative. In a plea to promote sustainable practices, India called upon these countries to collectively raise the global ethanol blending ratio with petrol to 20%.

Introduction

During the G20 Summit, Indian Prime Minister Narendra Modi unveiled the establishment of the Global Biofuels Alliance (GBA), comprising over 30 nations and international organizations. The primary objective of this alliance is to foster the widespread adoption of biofuels and enhance access to bioenergy, particularly in emerging economies.

Environmental Significance

This announcement coincides with a significant month for environmental awareness, featuring important events such as the International Day of Clean Air for Blue Skies on September 7, the International Day for the Preservation of the Ozone Layer on September 16, and World Environment Health Day on September 26. The G20 New Delhi Leaders’ Declaration also underscores the formation of the Global Biofuels Alliance as part of these environmental initiatives.

Action-Oriented Initiative

The launch of the GBA is a testament to India’s proactive role as the G20 President and its commitment to representing the interests of the ‘Voice of the Global South.’ The Ministry of Petroleum and Natural Gas has underscored India’s focus on taking concrete actions as part of its constructive agenda.

Key Members of GBA

The GBA comprises 19 countries and is bolstered by the participation of 12 international organizations. Among the prominent G20 member nations endorsing the alliance are Argentina, Brazil, Canada, India, Italy, South Africa, and the United States. Furthermore, four G20 Invitee countries, namely Bangladesh, Singapore, Mauritius, and the UAE, have also pledged their support to the GBA.

In addition to these, the alliance boasts participation from eight non-G20 nations, including Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda, and Finland. Furthermore, it enjoys the involvement of various international organizations such as the World Bank, Asian Development Bank, World Economic Forum, and others.

Biofuel Production and Consumption

GBA members stand as major players in both biofuel production and consumption, with the United States, Brazil, and India taking prominent roles in these aspects. Together, they hold a substantial share, representing approximately 85% of global biofuel production and 81% of ethanol consumption. Projections indicate a promising trajectory for the global ethanol market, with an anticipated compound annual growth rate (CAGR) of 5.1% by 2032, surpassing a total value of $162.12 billion by that year.

Objectives of the Alliance

The GBA aims to:

Promote Sustainable Biofuels: Support the development and deployment of sustainable biofuels globally.
Capacity Building: Offer capacity-building exercises, technical support, and policy lessons-sharing.
Virtual Marketplace: Create a virtual marketplace to map demand and supply, connect technology providers with end users.
Standards and Regulations: Develop and implement internationally recognized standards, sustainability principles, and regulations to incentivize biofuel adoption and trade.

Benefits for India

The GBA is expected to benefit India in several ways:

Global Strengthening: Enhance India’s global position and collaboration opportunities.
Export Opportunities: Provide Indian industries with opportunities to export technology and equipment.
Unlocking Bioenergy Access: Improve bioenergy access in emerging economies and create new business opportunities.
Low Carbon Energy: Contribute to low-carbon energy goals and reduce import dependency.