India's transportation sector is poised for a significant increase in greenhouse gas (GHG) emissions, with an expected compounded annual growth rate (CAGR) of 5% until 2030, as detailed in the 'Fueling the Future' report by Praxis Global Alliance and the Chamber of Commerce & Industry of India (CCI). This sector already contributes 10% of India's total emissions, highlighting the urgent need for sustainable solutions to combat global warming.
The report, presented at the Ethanol and Biofuel Conference by Meenakshi Lekhi, Minister of State for External Affairs & Culture, highlights the critical importance of limiting global warming to 1.5°C. It calls for a concerted effort to adopt eco-friendly practices to mitigate the environmental, social, and economic impacts of climate change.
Despite India's status as the world's third-largest GHG emitter, the nation is making strides in reducing emissions through increased biofuel use. The demand for biodiesel, for instance, is growing at a robust CAGR of approximately 9%, accounting for nearly 30% of total biofuel consumption in India.
Aryaman Tandon, Managing Partner & Co-founder of Praxis Global Alliance, stated, 'India, being a major GHG producer, is committed to eco-friendly solutions to combat global warming. With the rise in biodiesel demand and the government's transformative initiatives, we are not only reducing GHG emissions but also paving the way for a sustainable future'.
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 underscores India's dedication to reducing its dependence on fossil fuels and enhancing energy security. However, significant challenges remain, including the need to increase ethanol supply by 2.3 times and ramp up biodiesel production by 60% 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.
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