Global Biofuels Alliance:
The Global Biofuels Alliance is a collaborative initiative involving 19 countries and 12 international organizations.
Impact on India is Biofuel Production:
It aims to promote and define sustainable biofuels, encourage international cooperation, and facilitate the adoption of biofuels globally.
The Alliance is expected to boost India is biofuel production by fostering international cooperation and creating a virtual marketplace for biofuels.
This will likely result in increased production and trade of biofuels.
Indiacis biofuel production has resulted in significant economic savings, with Rs.73,000 crore saved over nine years.
Reducing Import Bills:
These savings have been used to allocate Rs.76,000 crore to farmers, thereby contributing to rural development.
Biofuels reduce the need for importing fossil fuels, thereby lowering import bills and enhancing energy security.
Potential Impact of Mandates:
By shifting to domestically produced biofuels, India can reduce its dependency on costly fossil fuel imports.
Mandating sustainable aviation fuel and higher blending percentages could significantly increase biofuel demand.
For example, a 1% mandate for sustainable aviation fuel would require 140 million additional liters of biofuel.
Increasing blending percentages from the current 12% to 20% by 2030 would necessitate the production of 10 billion liters of biofuel.
Benefits for Farmers and Manufacturers:
Biofuel production creates employment opportunities in the biofuel sector, benefiting farmers and engine manufacturers.
Ban on Biofuel Trading:
It also leads to reduced toxicity and lower pollution levels, contributing to a cleaner environment.
The government's approach is to first define sustainable and green biofuels through the Global Biofuels Alliance.
Concerns About Participation:
The ban on biofuel trading may be reconsidered once a clear definition and regulatory framework are established.
The participation of Saudi Arabia and Russia in the Alliance is seen as beneficial rather than problematic.
Reduction in Retail Fuel Prices:
While fossil fuel markets are much larger than biofuel markets, encouraging biofuels can help reduce expenditures on fossil fuel imports and promote a transition to cleaner energy sources.
The retail fuel prices depend on various factors, including the cost of fuel, freight, and insurance.
Contribution to Climate Change Fight:
While the government has taken steps to lower excise duty, state governments have not yet reduced value-added tax (VAT) on fuel.
The timing of any reduction in retail fuel prices depends on these factors.
India's biofuel initiative aligns with global efforts to combat climate change.
Biofuels produce fewer greenhouse gas emissions compared to fossil fuels, making them a more environmentally friendly energy source.
Encouraging the use of biofuels contributes to mitigating climate change and reducing air pollution.