Historic Moment in Global Energy Sector: Global Biofuels Alliance (GBA) Unveiled at G20 Summit
New Delhi, India – September 9, 2023 – The global energy sector marked a historic milestone with the announcement of the Global Biofuels Alliance (GBA) by Prime Minister Narendra Modi during the G20 Summit.
GBA, an initiative spearheaded by India, aims to establish an alliance comprising governments, international organizations, and industry leaders dedicated to promoting the adoption of biofuels. By uniting the world’s largest biofuel consumers and producers, GBA intends to drive the development and deployment of biofuels, positioning them as a pivotal element in the energy transition while contributing to job creation and economic growth.
The unveiling of GBA underscores India’s proactive agenda as the G20 President, representing the interests of the “Voice of the Global South.”
GBA is poised to support the global development and utilization of sustainable biofuels through capacity-building activities across the entire value chain, technical assistance for national programs, and the dissemination of policy insights. It will facilitate the establishment of a virtual marketplace, connecting industries, nations, ecosystem players, and key stakeholders to map demand and supply while bridging technology providers with end-users. Furthermore, GBA will play a pivotal role in developing, adopting, and implementing internationally recognized standards, codes, sustainability principles, and regulations to incentivize the adoption and trade of biofuels.
The initiative holds numerous benefits for India, strengthening its global standing as a tangible outcome of its G20 presidency. Additionally, GBA will foster collaboration and offer Indian industries opportunities to export technology and equipment. It will accelerate India’s ongoing biofuel initiatives such as PM-JIVAN Yojna, SATAT, and the GOBARdhan scheme, leading to increased income for farmers, job creation, and overall ecosystem development. The global ethanol market, valued at USD 99.06 billion in 2022, is projected to grow at a CAGR of 5.1% by 2032, surpassing USD 162.12 billion by 2032. According to the IEA, biofuels have 3.5-5 times growth potential by 2050 due to Net Zero targets, offering substantial opportunities for India.
As of now, 19 countries and 12 international organizations have pledged their support for GBA, including several G20 nations:
G20 countries (07) supporting GBA: Argentina, Brazil, Canada, India, Italy, South Africa, USA
G20 Invitee Countries (04) supporting GBA: Bangladesh, Singapore, Mauritius, UAE
Non-G20 countries (08) supporting GBA: Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda, and Finland
International organizations (12): World Bank, Asian Development Bank, World Economic Forum, World LPG Organization, UN Energy for All, UNIDO, Biofutures Platform, International Civil Aviation Organization, International Energy Agency, International Energy Forum, International Renewable Energy Agency, World Biogas Association.
GBA members collectively represent major biofuel producers and consumers, with the USA (52%), Brazil (30%), and India (3%) contributing approximately 85% of production and 81% of consumption of ethanol worldwide.
