In a groundbreaking move that promises to revolutionize the global energy sector, Prime Minister Shri Narendra Modi unveiled the Global Biofuels Alliance (GBA) during the recent G20 Summit. With 19 countries and 12 international organizations already committed to the initiative, GBA is poised to lead the world in the development and adoption of biofuels, reducing the world’s reliance on traditional fossil fuels.
The brainchild of Prime Minister Modi, GBA is an India-led initiative designed to bring together governments, international organizations, and industry leaders to promote the use of biofuels. By uniting the largest consumers and producers of biofuels, GBA seeks to position biofuels as a vital component of the global energy transition, fostering economic growth and job creation in the process.
Shri Hardeep Singh Puri, Minister of Petroleum & Natural Gas and Housing & Urban Affairs, expressed his enthusiasm for the GBA, emphasizing its potential to transform India’s agricultural landscape. Through the adoption of biofuels, Indian farmers can transition from “Annadatas to Urjadatas,” providing them with an additional source of income. Over the past nine years, India has allocated ₹71,600 crore to support its farmers. With the implementation of E20 by 2025, the country stands to save approximately ₹45,000 crore in oil imports and reduce oil consumption by 63 million metric tons annually.
The GBA is not only a game-changer for India but also holds global significance. Supported by G20 nations and key energy-related global organizations such as the International Energy Agency (IEA), International Civil Aviation Organization (ICAO), World Economic Forum (WEO), and World LPG Association, GBA will enhance global biofuels trade and best practices, helping member nations address the Energy Quadrilemma.
The alliance will offer capacity-building initiatives, and technical support for national programs, and promote the sharing of policy lessons. It will create a virtual marketplace to connect technology providers with end users, develop internationally recognized standards, codes, and sustainability principles, and incentivize biofuels adoption and trade.
For India, GBA holds multiple advantages, strengthening its global position and offering new opportunities for Indian industries in terms of technology and equipment exports. It will accelerate existing biofuel programs like PM-JIVAN Yojna, SATAT, and the GOBARdhan scheme, benefiting farmers, creating jobs, and advancing the Indian ecosystem. The global ethanol market, valued at USD 99.06 billion in 2022, is expected to exceed USD 162.12 billion by 2032, with a predicted CAGR of 5.1%. According to the IEA, biofuels have 3.5-5 times growth potential by 2050 due to Net Zero targets, presenting significant opportunities for India.
