New Delhi: A day after Prime Minister Narendra Modi launched the Global Biofuel Alliance (GBA) at the 18th G20 Summit in New Delhi, the India Biogas Association (IBA) on Sunday said that the Biofuel alliance could generate opportunities worth $500 billion in the next three years for G20 countries.
Union minister for road transport and highways (MoRTH), Nitin Gadkari too said that the renewed emphasis on biofuels would help the world community fight the pollution and make India achieve its net-zero emission within the set deadline.
Claiming that the alliance GBA would be a win-win situation for G20 countries and the environment, IBA said the alliance can generate opportunities worth USD 500 billion in the next three years for G20 nations.
As per the IBA findings biogas can generate an opportunity of $200 billion, considering the least investment required, compared to other energy generation options and easy availability of raw materials. “Bioenergy/Biogas, in principle, has the potential to replace fossil fuels completely, especially to decarbonize the transport sector,” the study pointed out.
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In 2016, the G20 adopted a voluntary action plan on renewable energy, which committed members to increase the share of renewable energy in their energy mix. India significantly increased its share of renewable energy in the overall energy mix and grew at a CAGR of roughly 22% in the last six years. India has ramped-up solar energy 20-fold in the last decade. During this period, solar energy and wind energy roughly grew at a CAGR of 38% and 30%, respectively.
The study further added that an initial investment of $100 billion in financial support will be required to trigger the biofuel industry, five billion for each G20 partner in the next three years. This anchor investment will have further multiplier effects on private investments and the production of biofuels, especially biogas.
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Creating a favourable regulatory environment in the G20 countries and sharing technological advancements will be key to the success of this biofuel alliance, it stated. The transfer of machinery and equipment within G20 partners must be made easy for the success of the biofuel alliance.
This will help G20 nations reduce their dependence on fossil fuels; their overall import bill for non-fossil fuels can be reduced by billions of dollars within the next three years, helping them meet Sustainable Development Goals, it stated.
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In an interview to a TV channel, Gadkari lauded PM Modi’s call to the G20 countries to join the initiative and set a global target of blending 20% ethanol with petrol like India. “The Biofuels Alliance is a historic event that will help us reduce world pollution in a major way,” the minister said, adding that the use of 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 newly formed alliance aims to secure the supply of biofuels, ensure their affordability, and promote sustainable production.
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“The Global Biofuel Alliance is a win-win situation for Atmanirbhar Bharat. It will help to reduce air pollution, create jobs, and make India a leader in the production and use of biofuels. The alliance is also aligned with India’s goal of becoming a carbon-neutral country by 2070,” Gadkari said.
