Global Biofuel Alliance (GBA) – 11-09-2023

Syllabus: GS3/Environment

In News

Prime Minister Narendra Modi launched the Global Biofuel Alliance on the sidelines of the G20 Summit in New Delhi.

What are Biofuels?

• Biomass can be converted directly into liquid fuels, called biofuels.
• The two most common types of biofuels in use today are ethanol and biodiesel, both of which represent the first generation of biofuel technology.
• Ethanol: Ethanol (CH3CH2OH) is a renewable fuel that can be made from various plant materials, collectively known as “biomass.”
  • It is an alcohol used as a blending agent with gasoline to increase octane and cut down carbon monoxide and other smog-causing emissions.
• Biodiesel: It is a liquid fuel produced from renewable sources, such as new and used vegetable oils and animal fats and is a cleaner-burning replacement for petroleum-based diesel fuel.
  • It is nontoxic and biodegradable and is produced by combining alcohol with vegetable oil, animal fat, or recycled cooking grease.

What is Global Biofuels Alliance (GBA)?

• It is an India-led Initiative to develop an alliance of Governments, International organizations and Industry to facilitate adoption of biofuels.
• Aim: To position biofuels as a key to energy transition and contribute to jobs and economic growth.
  • It will do so by bringing together the biggest consumers and producers of biofuels to drive biofuels development and deployment.
  • USA (52%), Brazil (30%) and India (3%),  contribute about 85% share in production and about 81% in consumption of ethanol.
• Members:19 countries and 12 international organisations have already agreed to join.
  • G20 countries (07) supporting GBA: 1. Argentina, 2. Brazil, 3. Canada, 4. India 5. Italy, 6. South Africa, 7. USA.
  • G20 Invitee Countries (04) supporting GBA: 1. Bangladesh, 2. Singapore, 3. Mauritius, 4. UAE.
  • Non G20 (08) supporting GBA: 1. Iceland, 2. Kenya, 3. Guyana, 4. Paraguay, 5. Seychelles, 6. Sri Lanka, and 7. Uganda have agreed to be initiating members of GBA, and 8. Finland
  • International organizations (12): 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.
• How it will work? It will support worldwide development and deployment of sustainable biofuels by offering capacity-building exercises across the value chain, technical support for national programs and promoting policy lessons-sharing. 
  • It will facilitate mobilizing 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 recognized standards, codes, sustainability principles and regulations to incentivize biofuels adoption and trade.

Significance for India

• GBA 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 programs 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 CAGR of 5.1% by 2032 and surpass USD 162.12 billion by 2032. 
  • As per IEA, there will be 3.5-5x biofuels growth potential by 2050 due to Net Zero targets, creating a huge opportunity for India.

Biomass Programs in India

• The Ministry of Petroleum and Natural Gas is targeting 20 percent ethanol blending in petrol by 2025 from this year. 
• Under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, it aims to set up 5,000 BioCNG plants with a production target of 15 MMT by 2023-24.
• The Ministry of New and Renewable Energy is setting up 500 new compressed biogas (CBG) plants under the GOBAR-dhan scheme.
• The Ministry of Power’s Samarth Scheme aims for 5 to 7 percent of co-firing biomass pellets, going up to 10 per cent and then up to 20 percent for all coal power being produced from carbon-neutral biomass utilising farm agri-residue. 
• India plans to mandate a one percent blending of Sustainable Aviation fuel with conventional jet fuel for all Indian airlines by 2025.
• Under the ambit of Swachh Bharat Mission-Urban 2.0, for management of organic/wet fraction of municipal solid waste biomethanation plants across cities was proposed in the Budget 2023-2024.

Source: PIB