India-Brazil Biofuels Alliance
The India-Brazil partnership on biofuels is gaining momentum amid rising global trade tensions and shifting energy geopolitics. While the India-US trade relationship faces strain due to tariffs and disagreements, India and Brazil are deepening cooperation through the Global Biofuels Alliance (GBA). This alliance focuses on sustainable biofuel adoption and energy security, positioning itself as a key player in the global low-carbon transition.
Renewed Trade Tensions and Their Impact
Recently, the United States imposed a 25 per cent tariff on Indian imports. This move stalled bilateral trade talks aimed at expanding trade to USD 500 billion by 2030. Key Indian export sectors such as textiles, pharmaceuticals, and electronics face vulnerability in the US market. Despite this, India continues its strategic cooperation with Brazil and the US within the GBA framework, balancing trade conflicts with clean energy collaboration.
The Global Biofuels Alliance and Its Strategic Role
Launched during India’s G20 presidency in 2023, the GBA promotes biofuels like ethanol blending, sustainable aviation fuels, and flex-fuel technologies. India aims for 20 per cent ethanol blending by 2025. Brazil brings its mature biofuel ecosystem, while the US contributes technological expertise. The alliance seeks to encourage sustainable biofuel production across the Global South, reinforcing energy security and climate goals amid protectionist trade trends.
What are Biofuels?
Biofuels are fuels derived from plant materials or animal waste. They reduce greenhouse gas emissions, lower fossil fuel dependence, and support rural economies. Biofuels are vital for sectors where decarbonisation is challenging, such as aviation and heavy transport. India and Brazil’s collaboration reflects a broader geopolitical shift, linking rural development with urban energy needs and climate resilience.
India and Brazil’s Biofuel Policies
Brazil’s Fuels of the Future law mandates increasing biodiesel blending from 14 per cent in 2025 to 20 per cent by 2030. India targets 10 per cent ethanol blending in petrol as an interim goal, alongside promoting compressed biogas and sustainable aviation fuels. Both countries have robust regulatory frameworks and financial incentives to support these targets, signalling strong medium- and long-term commitment to biofuels.
Technological and Economic Cooperation
Indian and Brazilian researchers collaborate on sugarcane ethanol and second-generation biofuels. Joint ventures aim to build bio-refineries in both countries. Brazilian energy giant Petrobras has committed $600 million to bioenergy projects. Indian companies like ONGC Videsh and Bharat Petroleum are investing in Brazil’s bioenergy sector. This cooperation exemplifies South-South collaboration for mutual benefit and energy security.
Challenges in Feedstock and Sustainability
Brazil’s reliance on soybean oil for biodiesel raises environmental concerns, especially regarding the Amazon and Cerrado regions. India balances biofuel expansion with food security, using feedstocks like rice straw and maize. Political and environmental complexities around feedstock sourcing remain key challenges. Pricing fluctuations and regulatory issues also affect the biofuel markets in both countries.
Future Prospects and Global Implications
The India-Brazil biofuels alliance offers an alternative to dominant clean energy models led by China and the US. It emphasises developmental equity and pragmatic green industrialisation. The upcoming BRICS Summit is expected to strengthen this partnership, especially in sustainable aviation fuels. This collaboration could position the Global South as a leader in biofuel innovation and climate resilience.
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