Biofuels Offer India Energy Security, Climate Credit, Farm Incentive

The EU's opposition to biofuels, particularly from the Global South, is not only hypocritical, but also historically unjust. Europe, with its history of colonialism, disrupted Indian agriculture by forcing the cultivation of cash crops like indigo, which resulted in poverty, famines and the deaths of millions during British rule. Now, when the Indian farmer finally has an opportunity to earn fair value for their produce, Europe is using the outdated argument of "food vs fuel" to oppose biofuels — a binary that does not apply to India.

Opportunity for Farmers

India has long ensured food security through policies like the Essential Commodities Act, 1955, which gives legal priority to food production over other uses, including biofuels. Unlike the EU, in India, biofuels are produced only after ensuring food security. The criticism from countries like Norway — who continue to drill for oil while opposing biofuels like Sustainable Aviation Fuel (SAF) — is ironic. It exposes the double standards of many developed nations, which have benefitted historically from fossil fuels, deforested the Global South for industrial gains and now wish to close off markets to the rest of the world in the name of climate change.

India’s biofuel sector is already showcasing immense potential. The Global Biofuels Alliance (GBA), launched under India’s presidency during the G-20 Leaders' Summit in 2023, brings together key biofuel producers and consumers to develop sustainable energy transitions. Despite this, India's biofuel contributions are still absent from its Nationally Determined Contributions (NDCs) under the Paris Agreement, 2016. Given that biofuels have the potential to not only reduce carbon emissions, but also support India’s energy independence and increase farmers' incomes, this oversight must be addressed.

A Solution Beyond Climate Change

Biofuels go beyond climate benefits. For India, this industry is a gateway to transforming the livelihoods of millions of farmers. Historically, food inflation in India has been controlled at the expense of farmers' incomes. Even today, 800 million Indians receive free food due to the impacts of COVID-19 and climate change. The Indian farmer, having been relegated to the role of food provider, has remained poor for generations. Biofuels give them an alternative — a chance to be fuel providers for the aviation industry, potentially quadrupling their income by shifting from food markets to energy markets.

The potential here is massive. For example, India’s ethanol-blending programme has already benefited 80 per cent of the country’s bio-ethanol supply, primarily from sugarcane farmers. This has led to a 46 per cent increase in farmers' incomes, showcasing the ability of biofuels to not only drive sustainable energy but also bolster rural economies.

However, this economic opportunity is at risk due to global opposition. European countries, many of whom have 10 to 15 times the per capita emissions of India, have consistently failed to deliver on their commitments to climate finance, especially the US$ 100 billion annual fund pledged under the Paris Agreement. Moreover, climate fund transfers often come as high-interest loans, enriching Global North countries, while leaving developing nations like India to struggle with the climate crisis.

Global Biofuels Alliance And Carbon Incentives

The Global Biofuels Alliance, announced during 2023 G20 New Delhi summit, is India’s opportunity to set the global agenda. Yet, India must take bolder steps to recognise the role of biofuels in its climate commitments. Currently, India does not account for carbon reductions from biofuels in its NDCs. This must change. By including biofuels in its carbon accounting, India can unlock both international funding and domestic investment for the sector. Carbon incentives — similar to those for renewable energy — should be introduced to encourage large-scale adoption of biofuels.

Moreover, the GBA can establish a global framework for biofuels, promoting international cooperation and standardising incentives for biofuel production and trade. This would not only support India’s biofuel sector, but also strengthen global climate efforts, making the case for biofuels as a vital part of the solution to climate change.

Energy Security, Beyond Emission Reductions

Biofuels also address a critical issue that renewable technologies like electric vehicles (EVs) fail to solve: Energy security. While EVs rely heavily on lithium imports — particularly from China — biofuels can be produced domestically, reducing dependency on foreign energy sources. In a world where geopolitical tensions frequently disrupt supply chains, biofuels offer India a sustainable, homegrown alternative.

The future of India’s energy transition must include a robust biofuel strategy. The G-20 and CEM15 discussions in Brazil are reminders that biofuels are not just about climate change — they are about correcting historical injustices, empowering Indian farmers and ensuring energy security for the nation. By integrating biofuels into its NDCs, incentivising the sector and leveraging the GBA to shape a global framework, India can lead the world in sustainable energy, while transforming the lives of millions at home.

This is a pivotal moment for biofuels, and India must seize it. The opposition from Europe is loud, but India's resolve should be louder.