New Delhi, Sept 10, 2023. The Global Biofuels Alliance (GBA) was launched by Prime Minister Narendra Modi at the 18th G20 Leaders' Summit in New Delhi on September 9th, 2023. The Prime Minister called on countries to join the initiative and set a global target of blending 20% ethanol with petrol. The Alliance intends to expedite the global uptake of biofuels through facilitating technology advancements, intensifying utilization of sustainable biofuels, shaping robust standard setting and certification through the participation of a wide spectrum of stakeholders.
The alliance will also act as a central repository of knowledge and serve as a catalytic platform, fostering global collaboration for the advancement and widespread adoption of biofuels. The three founding members of the alliance- India, United States and Brazil contribute approximately 85% of the global production and 81% consumption of ethanol.
GBA has been launched with nine initiating members–India, the US, Brazil, Argentina, Bangladesh, Italy, Mauritius, South Africa, and the United Arab Emirates–while Canada and Singapore are observer countries. In all, 19 countries and 12 international organisations including The World Bank, Asian Development Bank, World Economic Forum and International Energy Agency have already agreed to join the GBA.
China and oil producers Saudi Arabia and Russia have however decided not to be part of the alliance. With an eye on the Organization of the Petroleum Exporting Countries (Opec)+ grouping, where both Saudi Arabia and Russia are members, the Indian-conceptualized alliance is being positioned as a global forum to help boost demand and technology transfer for the production of biofuels and enhance trade.
Taking to X (formerly Twitter), Prime Minister Narendra Modi said: "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."
Commenting on the significance of the Alliance, Union Minister of Road Transport and Highways, Nitin Gadkari, said "The Biofuels Alliance is a historic event that will help us reduce world pollution in a major way. Using ethanol in petrol is a major achievement, and it will be especially helpful for farmers, who can now sell their surplus crop to fuel stations."
India is increasing its ability to produce biofuels, a renewable energy source derived from organic matter. The country imports more than 85% of its crude oil requirements, so it is looking to reduce its reliance on imported oil by producing biofuels from domestic sources.
The launch of the alliance coincides with India, the United States, and several major economies announcing an ambitious India-Middle East-Europe Economic Corridor.
In 2009, developed countries pledged to provide $100 billion per year by 2020 to help developing countries combat climate change. However, this never materialised. The Biofuel Alliance being agreed when the G20 presidency is with India, the world's third-largest oil consumer, is therefore seen as a landmark moment for the country that is being hailed as the voice of the Global South.
