Even as the country's transportation sector appears set on a course of increasing levels of emission, India is taking significant strides towards its net zero goals by promoting biofuels
India's transportation sector is set to spew increasing amounts of greenhouse gases until 2030. According to a Chamber of Commerce & Industry of India (CCI) report, emissions from transportation, which already contributes 10 percent of India's total emissions, can be expected to grow over the next five years at a CAGR of 5 percent. The report sends out a strong call for sustainable solutions to contain global warming to within 1.5°C.
The report recommends that the nation must make concerted efforts to adopt eco-friendly practices to mitigate the environmental, social, and economic impacts of climate change.
Although India remains the world's third-largest greenhouse gas emitter, it is making remarkable progress towards reducing emissions by promoting biofuels. The demand for biodiesel, for instance, is growing at a CAGR of approximately 9 percent, accounting for nearly 30 percent of total biofuel consumption in India."
It discusses the feasibility of these fuels in replacing traditional energy sources, the government's policy support, and financial frameworks designed to promote biofuel adoption.
India's achievements in biofuel usage are noteworthy. The country met its E10 ethanol blending target ahead of schedule in 2022 and aims to reach E20 by 2025. This progress reflects India's resolve to transition away from polluting fossil fuels and also underlines its commitment to cementing its energy security.
However, significant challenges remain, including the need to increase ethanol supply by 2.3 times and ramp up biodiesel production by 60 percent year-on-year to meet the B5 blending target by 2030.
The government's biofuel initiatives have already led to substantial benefits, including a reduction of 32 million metric tonnes of GHG emissions due to the Ethanol Blending Program (EBP). Additionally, the programme has saved approximately INR 70,000 crore on crude oil imports and boosted farmers' income by INR 17,000 crore in 2022 alone. The establishment of over 100 new distilleries and the plan to set up 5,000 compressed biogas (CBG) plants further illustrate the economic and environmental advantages of biofuel adoption.