India is the world’s third-largest greenhouse gas (GHG) emitter, with the transportation sector contributing 10% of the country’s total emissions. The ‘Fueling the Future’ report by Praxis Global Alliance and the Chamber of Commerce & Industry of India (CCI) highlights India’s proactive stance towards sustainability, emphasizing the nation’s commitment to combating global warming.
Unveiled at the Ethanol and Biofuel Conference by Smt. Meenakshi Lekhi, Hon’ble Minister of State for External Affairs & Culture at the Government of India, this report underscores the urgent need to limit Earth’s warming to 1.5°C and adopt sustainable, eco-friendly solutions to address the environmental, social, and economic challenges triggered by global warming.
While talking about the report, Aryaman Tandon, Managing Partner & Cofounder, Praxis Global Alliance stated, “India, the world’s 3rd most intense GHG producer is embracing eco-friendly solutions to combat against global warming. With the rapid rise in bio-diesel demand coupled with the government’s proactive & transformative initiatives, we are not just reducing GHG emissions; we are fueling a greener, sustainable future for all.”
Key Findings from the Report:
- Rising Emissions in Transportation: GHG emissions from India’s transportation sector are projected to grow at a compounded annual growth rate (CAGR) of 5%.
- Bio-diesel Demand Surge: The demand for bio-diesel is increasing at a CAGR of approximately 9%, making up nearly 30% of the total biofuel usage in the country. This shift is a significant step towards reducing GHG emissions and embracing green fuels.
- Government Initiatives and Roadmap: Unveiled at the Ethanol and Biofuel Conference by Smt. Meenakshi Lekhi, Hon’ble Minister of State for External Affairs & Culture at the Government of India, the report highlights the need to limit global warming to 1.5°C. It also explores the potential of biofuels and green hydrogen as substitutes for fossil fuels, detailing the government’s initiatives to promote biofuel adoption with financial support.
- Ethanol Blending Program (EBP): India’s early achievement of the E10 target in 2022 and the accelerated adoption timeline for E20 by 2025 demonstrate a strong commitment to sustainability. Challenges include increasing ethanol supply by 2.3 times and boosting biodiesel production by around 60% year-on-year to meet B5 targets.
- Economic and Environmental Benefits:
- GHG Emission Reduction: The EBP program has reduced 32 million metric tons (MMT) of GHG emissions, promoting a cleaner environment.
- Crude Oil Import Savings: India has saved approximately INR 70,000 crore from reduced crude oil imports, increasing self-reliance.
- Biofuel Infrastructure: Over 100 distilleries have been established, and 5,000 compressed biogas (CBG) plants are planned to accelerate biofuel supply and promote ‘Make in India.’
- Economic Boost for Farmers: In 2022, farmers received around INR 17,000 crore for procuring feedstock, boosting the rural economy.
- Job Creation: The biofuel sector has the potential to create over 75,000 job opportunities, contributing to economic growth.
- Utilization of Used Cooking Oil: There is potential to use 1.4 billion liters of used cooking oil, reducing waste and contributing to sustainable energy sources.
