Jul 13, 2025
12
mins read
The global energy landscape is rapidly shifting towards renewable sources. Biofuels- fuels made from plant or organic matter – are emerging as a key part of this transition. Any hydrocarbon fuel that is produced from an organic matter (living or once living material) in a short period of time (days, weeks, or even months) is considered a biofuel. Biofuels produce lower greenhouse gas emissions than fossil fuels and can reduce dependence on imported oil. This shift is driven by rising fossil fuel prices, climate change concerns and the need to boost farmers’ incomes. Many international organizations are now promoting biofuels. Notably, India launched the Global Biofuels Alliance (GBA), an international organisation, at the 2023 G20 summit to unite governments, industries and organizations in accelerating sustainable biofuels adoption.
Biofuels are renewable fuels produced from biomass (plant or organic matter) over short time spans. They include liquid fuels (like ethanol and biodiesel), gaseous fuels (biogas), and solid biofuels (wood, pellets). Their advantages span energy, environment and economy:
Renewable & Low-Carbon: Biofuels are made from crops or waste that can be replanted or renewed. They emit significantly less greenhouse gases than fossil fuels.
Energy Security: By using domestic biomass instead of imported oil, biofuels reduce foreign exchange outflows and enhance energy independence.
Rural Development: Growing feedstocks and building biofuel plants create rural jobs. Farmers gain additional income by selling surplus crops and waste for fuel.
Abundant Feedstocks: A wide variety of organic materials can make biofuels – crops (sugarcane, maize), forest residues, manure, used cooking oil, etc.
Waste Utilization: Agricultural and food waste (e.g. rice straw, cotton stalks, or used cooking oil) can be converted into biofuels, reducing landfill and pollution.
Comparison Table: Benefits and Concerns regarding adoption of biofuels
Aspect | Benefits | Concerns |
Land & Food use | Utilizes marginal land (non-arable) for energy crops. | Can compete with food crops for land and water; may drive up food prices if not managed. |
Technology & Cost | Advances (2G/3G tech) promise higher efficiency. | Early-stage tech, high initial costs, and lack of infrastructure (refueling stations, logistics) can limit uptake. |
Environmental Impact | Lower CO₂ emissions; recycles carbon via plant growth. | Unsustainable practices (e.g. deforestation) can negate benefits. Intensive farming may increase water and fertilizer use. |
Economic Growth | Opens new markets; encourages trade and investment. | Requires stable policies and financing. Competition from subsidized fossil fuels can be a barrier. |
Energy Security | Reduces oil imports; diversification of energy mix. | Limited by biomass availability; in low-supply countries, biofuels cannot be a dominant energy source. |
International cooperation is critical for realizing these benefits. The GBA, as one of the emerging international organizations, provides a platform to address the challenges and share solutions. It promotes sustainable biofuels by encouraging the use of non-food crops and waste feedstocks (e.g. algae, jatropha, residues) so that fuel production does not undermine food security. Advanced (2nd-4th generation) biofuels, such as cellulosic ethanol or algae fuels, are also emphasized since they offer better yields and less environmental impact.
Table of content
The Global Biofuels Alliance (GBA) was launched by India at the 2023 G20 summit in New Delhi. It is a multi-stakeholder alliance uniting governments, international organizations and industries to advance these sustainable biofuels worldwide. The GBA aims to strengthen global biofuels trade for a greener sustainable future.
Key objectives of the GBA include:
Accelerating Biofuel Adoption: Facilitate the global uptake of biofuels through joint policies, technology transfer and capacity building. The alliance works to expand formal biofuel markets and trade, helping countries learn from each other’s successes.
Developing Standards and Guidelines: Create and promote international standards, codes and sustainability criteria for biofuels. A harmonized approach ensures that biofuels meet high environmental and social benchmarks globally.
Knowledge & Innovation Hub: Serve as a central repository of best practices, research and innovation in bioenergy. GBA provides technical support, policy lessons and pilot projects to member countries.
Global Trade and Investment: Strengthen markets and trade networks for biofuels. By linking producers with consumers (for example, encouraging USA and Brazil to share expertise), the alliance aims to build a robust international biofuels economy.
Economic Growth and Jobs: Drive green growth by creating jobs in production of biofuels, processing and R&D. Increased biofuel trade can boost export revenues (positioning countries like India to become major biofuel exporters alongside the US and Brazil).
The alliance has broad global support: over 20 countries and a dozen international organizations have joined or backed it. Member countries include G20 leaders (India, the US, Brazil, Italy, South Africa, etc.), developing nations (Bangladesh, Kenya, Uganda, Tanzania, etc.) and bodies like the Asian Development Bank and World Economic Forum. This wide membership underscores GBA’s role in uniting diverse nations around common sustainable energy goals.
For India, GBA is particularly significant. It complements India’s national biofuel strategy and ambitions:
Technology Transfer & Funding: GBA facilitates the exchange of clean fuel technologies and access to international climate finance. It boosts sectors like compressed biogas (CBG) and next-generation ethanol.
Ethanol Blending Targets: Under GBA cooperation, India will learn from Brazil’s success (which now uses E85 flex-fuel vehicles). Having achieved the E10 blending goal, India has advanced its target to 20% (E20) by 2025-26. This reduces petroleum imports and carbon emissions.
Fuel Innovation: The alliance encourages India’s shift to flex-fuel vehicles and sustainable aviation fuels (SAF). Long-term, this can lower India’s crude oil import bill and help meet climate commitments.
Export Opportunities: By expanding biofuel production (from sugar, maize, etc.), India can increase its share in the global market and become a major biofuel exporter.
Employment and Rural Income: Investment and scaling of biofuel projects under GBA support will create jobs and raise farm incomes. This aligns with goals like doubling farmers’ income.
Climate Action: Establishment of GBA reinforces the fight against climate change as it will help countries cooperate to reduce the usage of traditional fuels.
A major concern in biofuel expansion is the food vs fuel debate. Using prime agricultural land to grow fuel crops can reduce land for food production, risking higher food prices and shortages. In countries like India with limited surplus farmland, widespread fuel-crop cultivation is not feasible without careful management. To address this, policies emphasize:
Surplus & Waste Feedstocks: Biofuel programs allow only food grains in surplus year or use waste. India’s policy explicitly permits only surplus grains and encourages using alternative feedstocks (cassava, maize, damaged potatoes, bagasse, stubble, etc.) for ethanol.
Non-Food Crops: Planting oilseeds and non-edible crops (jatropha, Pongamia, algae) on degraded land helps avoid encroaching on food farms. Algae, for instance, can be grown on saline or marginal land with high oil yield.
Second/Third-Gen Biofuels: Advanced biofuels from lignocellulosic biomass (stalks, wood chips) or algae yield much more fuel per hectare than first-generation biofuels, and do not compete with food crops. These newer fuels also cut greenhouse gases further. GBA promotes these sustainable pathways to minimize land-use conflict.
Biofuels come in several forms, each suited to different uses:
Bioethanol (Ethanol): A liquid fuel produced by fermenting sugars from crops like sugarcane, maize or even cellulosic biomass. It is widely blended into gasoline (petrol) – e.g. E10 (10% ethanol) or E20 – to reduce petrol use and emissions.
Biodiesel: A diesel-replacement fuel made by Transesterification of vegetable oils or animal fats. It can be used pure or blended with fossil diesel. Biodiesel use cuts particulate and CO₂ emissions.
Biogas / Bio-CNG: A gaseous fuel (mainly methane) generated by anaerobic digestion of organic waste (sewage, animal dung, crop residues). Compressed biogas (CBG) can substitute for natural gas in vehicles, power plants and industry. India’s SATAT program aims to produce millions of tonnes of Compressed biogas (CBG) from waste.
Solid Biofuels: Wood chips, pellets or charcoal used for heating, cooking or power generation. While outside the transport sector, they are a key part of the biomass energy mix, especially in rural areas.
Generation | Feedstock | Production Method | Key Advantages | Challenges |
First | Edible crops (e.g., sugarcane, corn, soy) | Fermentation (ethanol) or transesterification (biodiesel) | Established technology; compatible with existing infrastructure | Competes with food supply; potential for deforestation and land-use change |
Second | Non-food biomass (e.g., crop residues, wood, algae) | Enzymatic hydrolysis, gasification, pyrolysis | Reduces greenhouse gas emissions; utilizes waste materials | Higher production costs; technological and economic scalability issues |
Third | Algae, microorganisms | Cultivation of algae in ponds or bioreactors; fermentation of algal biomass | High yield per acre; does not compete with food crops | Requires significant investment in infrastructure and technology |
Fourth | Genetically engineered organisms (e.g., algae, crops) | Genetic modification to enhance fuel production; carbon capture and storage | Potentially carbon-negative; optimized for high fuel yield | Currently in research phase; not yet commercially viable |
Despite the promise, several hurdles slow biofuel uptake:
High Costs & Technology: Advanced biofuel technologies (2G/3G processes) are capital-intensive and still maturing. Early projects lack economies of scale, making biofuels more expensive than conventional fuels. Infrastructure (plants, pipelines, refueling stations) needs major investment.
Policy and Market Uncertainty: Inconsistent policies or subsidies can deter long-term investment. Global oil price fluctuations also affect biofuel competitiveness. Clear international standards (which GBA is working on) are still evolving, adding uncertainty.
Land and Food Security: As noted, in countries with limited farmland, dedicating crops to fuel can strain food supply. Ensuring biofuel growth does not lead to deforestation or monoculture is a constant challenge.
Feedstock Limits: In some regions, there simply isn’t enough feedstock available.This means other renewable options or imports might still be needed.
Environmental Trade-offs: Not all biofuels are equal. Some biofuel production can (if done unsustainably) cause high GHG emissions (e.g. if forests are cleared). Water use and chemical fertilizers for energy crops can also have ecological impacts. Strict sustainability criteria are needed to address these trade-offs.
India has emerged as a leader in biofuels under this international organisation umbrella. The government’s National Policy on Biofuels (2018, amended 2022) and related programs set ambitious goals and incentives:
Ethanol Blending Programme (EBP): India fixed a 20% target by 2025-26 (moved up from 2030). Public oil companies achieved E10 by mid-2022 and reached nearly 18% blending by early 2025.
Expanding Production: To meet E20, India scaled up ethanol distillation capacity (to ~18.1 billion liters by 2025). Major sugar mills and distilleries now produce ethanol from both molasses and grain, supported by financial incentives and off-take agreements.
2G Ethanol – JI-VAN: The Pradhan Mantri JI-VAN scheme (2019) finances commercial 2nd-generation ethanol plants using crop residues. This helps convert rice straw, corn stalks, etc. into fuel, tackling air pollution (stubble burning) and adding to ethanol supply.
CBG and Bio-CNG: Under the SATAT initiative, India supports the setup of thousands of compressed biogas plants converting organic waste (e.g. dairy manure) into CNG. Oil companies guarantee purchase, ensuring offtake.
Used Cooking Oil to Biodiesel: The RUCO program collects waste cooking oil nationwide to produce biodiesel, preventing environmental hazards and adding to diesel substitutes.
GOBAR (Galvanizing Organic Bio-Agro Resources) DHAN scheme, 2018: It focuses on managing and converting cattle dung and solid waste in farms to useful compost, biogas and bio-CNG, thus keeping villages clean and increasing the income of rural households. It was launched under Swachh Bharat Mission (Gramin)
These concerted steps have made India the third-largest ethanol producer globally (after the US and Brazil).
While the GBA holds promise, analysts note several viability concerns with the international organizations:
Technology Transfer Issues: Developed countries may be reluctant to share advanced biofuel technology or intellectual property with others. Such secrecy could slow global diffusion of next-gen biofuel tech.
Geopolitical Tensions: Some major powers have mixed reactions. For example, China and Russia (not G20 members of GBA) have shown ambivalence towards Western-led climate platforms. Oil-exporting countries like Saudi Arabia and Russia view biofuels as competing with their fossil fuels, potentially opposing an alliance focused on alternative fuels. Meanwhile, India and China (both big coal producers and users) may lack incentive to fully commit to an all-biofuel energy future.
Funding Limitations: Building large bio-refineries and feedstock supply chains requires significant investment. International organizations (e.g. World Bank, IMF) currently lack dedicated funds for bioenergy at the scale needed. Mobilizing private capital and affordable loans is a challenge.
Trade Barriers: Some countries (including India) impose import restrictions or tariffs on biofuels and feedstocks to protect local industries. This can limit global trade in biofuels and reduce the effectiveness of a unified alliance market.
Environmental Concerns: Scaling production of biofuels can have unintended impacts. In water-scarce regions, increased irrigation for energy crops may stress supplies. Similarly, expanding biomass plantations can threaten wildlife or increase fertilizer runoff. These ecological factors could deter some countries from joining an expansive biofuels agenda.
Q: What is the Global Biofuels Alliance (GBA)?
A: The GBA, launched by India at the 2023 G20 summit, promotes global biofuel production, trade, and sustainability. It unites nations and organizations to boost cleaner fuels.
Q: Which are the Global Biofuels Alliance Countries?
A: Over 20 nations, including India, USA, Brazil, Japan, and Italy, are part of the GBA, along with global bodies like the IEA and ADB.
Q: What are the main types (generations) of biofuels?
A: Biofuels range from 1st-gen to 4th-gen (engineered carbon-capturing plants), each improving sustainability and yield.
Q: How do biofuels improve India’s energy security?
A: India’s ethanol production cuts oil imports, saving foreign exchange and strengthening energy security through cleaner domestic fuel sources.
The Global Biofuels Alliance (GBA) unites over 20 countries to boost biofuel production and trade. It supports India’s ethanol production goals and promotes global cooperation on sustainable fuels. With workstreams on policy, trade, and capacity building, GBA addresses key challenges while advancing clean energy. For UPSC aspirants, Global Biofuels Alliance UPSC is a key topic as the alliance plays a vital role in shaping future energy strategies and enhancing India’s leadership in renewable energy.
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UPSC Official Website – Syllabus & Notification: https://upsc.gov.in/
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