Global Biofuels Alliance : Driving Factors

Why in news? On the sidelines of the annual G-20 summit in New Delhi, an India-led grouping came together to give impetus to the production and use of biofuels. The grouping is called the Global Biofuels Alliance (GBA). GBA would attempt to bring countries together to co-develop, accelerate technological advances in production processes, and advocate for the use of biofuels particularly in the transport sector. The three founding members, India, U.S. and Brazil, were joined by Argentina, Canada, Italy and South Africa.

What are biofuels?

• The International Energy Agency (IEA) defines biofuels as liquid fuels derived from biomass. It is used as an alternative to fossil fuel based liquid transportation fuels such as gasoline, diesel and aviation fuels.

Types of Biofuels

• 1G ethanol, or first-generation biofuel
  • It is derived from crops grown specifically to produce biofuels such as sugarcane, corn, or soybean.
• 2G ethanol or second-generation biofuel
  • It is derived from agricultural waste, used cooking oil and processed animal residues like fats.

Are biofuels an alternative to fossil fuels?

• Experts make a distinction between biofuels and sustainable biofuels.
  • The 1G ethanol comes under the category of biofuels while the 2G ethanol is categorised as sustainable biofuels by experts.
• This distinction has now come into sharp focus as climate change accelerates, with fears of threat to food security and increased loss of forests and biodiversity due to greater land required for farming.
• Estimates suggest that well over half of all vegetated land is under cultivation today, and that agriculture is one of the world’s largest carbon emitters.
• The GBA has emphasised that its focus would be to develop 2G ethanol.

Why is there a renewed focus on biofuels?

• With severe disruptions to global crude oil supplies following the Ukraine war, several countries have been scrambling to find alternatives to the import dependence on petrol and diesel.
• India imports 87% of its crude oil, and it is the main reserve currency expenditure for the country.
• With transport accounting for about one-quarter of global carbon emissions, there have been renewed attempts to accelerate the decarbonising of this sector.
  • Several countries are announcing battery production and electric vehicle (EV) policies.
• But some modes of transport like aviation, shipping and long-haul trucking will find it harder to reduce carbon emissions compared to self-driven cars or motorbikes.
• It is here that experts feel that 2G ethanol could be a valuable substitute.

Do biofuels aid energy transition?

• Most biofuels today are blended with petrol or diesel at varying degrees.
  • For instance, India blends about 10% of biofuels. India has started the rollout of 20% ethanol-blended petrol and aims to cover the entire nation by 2025
• Some experts feel that accelerating EV adoption and developing alternatives like green hydrogen must be the focus of the ongoing energy transition.
• On the other hand, many other experts argue that 2G ethanol would soften the impending disruption.
  • It would do so by allowing to reduce greenhouse gas (GHG) emissions even while stretching the life of internal combustion engines.
  • This will give time for automakers to develop robust alternatives, while increasing farmers’ incomes and providing jobs.

What happens next?

• The three founding members of the GBA produce 85% of global biofuels and consume about 81% of it.
• In line with the renewed push to enhance biofuel use and production, countries have been taking steps in this direction.
  • India had announced the setting up of 12 new refineries as early as 2018 with the aim to meet 20% ethanol blending by 2025.
  • This becomes even more significant following India’s announcement to become net zero by 2070.
• The IEA predicts that about two-thirds of the global biofuel demand will come from three emerging economies – India, Brazil and Indonesia.
• These countries have ample domestic feedstocks, additional production capacity, relatively low production costs and a package of policies they can leverage to increase demand.
• However, it remains to be seen if this would indeed hasten decarbonising of the energy sector.

Source: The Hindu