India has quickly joined the ranks of major biofuel producer and consumer thanks to a set of coordinated policies, high-level political support, and an abundance of feedstocks. Over the next five years it has the potential to nearly triple consumption and production by removing roadblocks to higher ethanol blends and diversifying biofuel use to replace diesel and jet fuel. However, it will need to keep an eye on costs, feedstock sustainability and deploy supportive policies to other biofuels beyond ethanol.
India has another opportunity to boost global biofuel deployment as well through the Global Biofuels Alliance, which it launched in 2023 with leaders from eight other countries. Last year the IEA released "Biofuel Policy in Brazil, India and the United States: Insights for the Global Biofuel Alliance" to support the GBA's development. In it the IEA recommends the GBA focus on developing new and existing markets since over 80% of production is concentrated in four regions: the United States, Brazil, Europe and Indonesia, which account for only half of global transport fuel demand. We also recommend accelerating technology deployment and commercialisation, and seeking consensus on performance-based sustainability assessments.
In this brief commentary we consider the global status of biofuels, India's domestic potential and what the GBA can do to help accelerate sustainable biofuels use globally.
Biofuel use is accelerating, led by emerging economies
Over the next five years biofuel demand is set to expand 38 billion litres, a near 30% increase from the last five-year period. In fact, total biofuel demand rises 23% to 200 billion litres by 2028, with renewable diesel and biojet accounting for almost half of this growth with the remainder coming from ethanol and biodiesel.
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