The global energy sector witnessed a historic milestone today as Prime Minister Shri Narendra Modi announced the formation of the Global Biofuels Alliance (GBA) during the G20 Summit. This significant initiative, led by India, aims to unite governments, international organizations, and industry leaders in a collaborative effort to promote the adoption of biofuels worldwide.
GBA seeks to bring together the world’s largest consumers and producers of biofuels to drive the development and deployment of sustainable biofuel technologies. The alliance’s overarching goal is to position biofuels as a crucial component of the ongoing global energy transition while simultaneously contributing to job creation and economic growth.
The announcement of the Global Biofuels Alliance underscores India’s proactive approach as the G20 President and its role as the “Voice of the Global South” in addressing pressing global challenges.
GBA’s initiatives will encompass a range of activities, including capacity-building exercises across the biofuel value chain, technical support for national biofuel programs, and the promotion of policy lessons-sharing among member nations. Additionally, the alliance will establish a virtual marketplace to facilitate interactions between industries, countries, ecosystem players, and key stakeholders, helping to map demand and supply and connect technology providers with end-users. GBA will also work towards the development, adoption, and implementation of internationally recognized standards, codes, sustainability principles, and regulations to incentivize biofuel adoption and trade on a global scale.
For India, the Global Biofuels Alliance holds numerous advantages. It reinforces India’s global standing, enhances collaboration opportunities, and provides Indian industries with avenues to export technology and equipment. Moreover, the alliance will accelerate India’s existing biofuel programs, such as PM-JIVAN Yojna, SATAT, and the GOBARdhan scheme, thereby boosting farmers’ incomes, creating jobs, and contributing to the overall development of India’s biofuel ecosystem. According to reports, the global ethanol market is predicted to grow at a CAGR of 5.1% by 2032, reaching over USD 162.12 billion by that year, driven by Net Zero targets, presenting significant opportunities for India.
The Global Biofuels Alliance has already garnered support from a broad spectrum of countries and international organizations. Among the early supporters are G20 countries like Argentina, Brazil, Canada, India, Italy, South Africa, and the USA, along with invitee countries Bangladesh, Singapore, Mauritius, and the UAE. Additionally, non-G20 countries Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda, and Finland have committed to becoming initiating members of GBA. Furthermore, 12 international organizations, including the World Bank, Asian Development Bank, World Economic Forum, and the International Energy Agency, have expressed their support.