India and Brazil have discussed the delay in establishing the physical presence and diplomatic status of the Global Biofuel Alliance (GBA), agreeing on the need to establish both by the end of the current year, sources said. The issue was discussed during Petroleum Minister Hardeep Singh Puri’s meeting with his counterpart in Brasilia last month, they added.
The GBA was launched on September 9, 2023, on the sidelines of the G20 Summit in New Delhi. However, more than a year later, it remains without a charter, a fixed governance structure, or a permanent secretariat. “Both sides recognised the importance of quickly resolving the pending work on GBA. A year-end date is being tentatively eyed for clearing the pending work on securing a headquarters and establishing a charter,” an official source said.
However, the multi-stakeholder alliance of governments, international organisations, and industries has adopted a work plan. Focusing on assessing country landscapes, drafting policy frameworks, and conducting biofuel workshops, these were identified as immediate goals at a key meeting of the body held on the sidelines of the G7 deliberations in Brazil in April, with the GBA taking stock of these in July, a Petroleum and Natural Gas Ministry official said.
India has also suggested three potential workstreams to support biofuel trade, increase awareness of biofuels, and identify support mechanisms for enhanced adoption of biofuels.
“These developments also came up during the latest visit. Both countries feel there has been good progress on the segmented approach towards GBA’s goals that has been taken so far,” the official added.
Interest growing
The GBA aims to reshape the global landscape and expedite the uptake of biofuels worldwide, set standards for biofuel, expand the size of formal biofuel markets, and better map demand and supply. India and Brazil were the main drivers of the 24-nation grouping, which saw 24 diverse countries, from Singapore, Argentina, and the UAE to Mauritius and Bangladesh, signing up. Among the G7 nations, Italy and the United States are part of the alliance.
However, while major energy producers such as Russia, China, and Saudi Arabia have remained unconvinced of the merits of joining the bloc, it has generated special interest among African nations. Apart from G20 member South Africa, non-G20 nations like Kenya and Uganda are also on the list, while Tanzania is keen on joining, sources said. Caribbean island nation Jamaica has been the latest to show intent to join the GBA, the Ministry of External Affairs said on Tuesday.
According to the International Energy Agency (IEA), biofuels have the potential to grow by 3.5 to 5 times by 2050 due to Net Zero targets, creating a huge opportunity for India.
A record 171.2 billion litres of biofuels were procured globally in 2022, with India contributing just 2.7 per cent, or 4.6 billion litres. Despite this, India remains the third-largest producer of ethanol, after the United States and Brazil, the IEA notes.
By aligning itself with both these nations in the GBA, India seeks to rectify this disparity, given that it is among the largest producers of biofuel feedstock, including sugarcane, maize, and vegetable oils.
First Published: Oct 02 2024 | 5:12 PM IST
