Global Biofuels Alliance (GBA) is an initiative of the G20 attendees who participated in the G20 Summit 2023. The initiative marks the beginning of a new world order with clean energy transition, as it aims to promote the use of biofuels as an alternative to fossil fuels.
Biofuels are liquid fuels derived from biomass (plant materials) and used as an alternative to fossil fuels such as coal, oil and natural gas and can be used as an alternative to traditional transportation fuels such as petrol and diesel, along with fuels used in the aviation industry.
About The Global Biofuels Alliance
The Global Biofuels Alliance (GBA) was presented by the Indian Presidency at the G20 Summit this year. The GBA will encourage the use of biofuels, along with strengthening the global trade for this earth-friendly-fossil fuel alternative, leading the way to establishing sustainable biofuels.
India, Brazil, and the USA collectively founded the Global Biofuels Alliance at the G20. Several other countries invited to G20 2023 support the initiative, and reports suggest that non-G20 countries are rooting for the GBA and are interested in joining the alliance for biofuel adoption.
Global Biofuels Trade Trends
The shown data features the export values of biofuels [for Heading 3826] from 2018 to 2022 on a global basis. The year 2018 amounted to biofuel exports of quite similar values as they lie in the same range but following 2020, the values of the exports have significantly risen afterwards.
The biofuel trade has increased in recent years, following the growing concerns of climate change and for achieving the net-zero emissions target. The Global Biofuels Alliance is also focusing on the growing significance of biofuel in the global trade markets as an objective.
The data shown below features the top importing and exporting countries of biofuels in 2022 and the share of their trade. The top countries include the Netherlands, Belgium, France, Germany, and more as shown in the graph. Look at the represented data to learn more about it.
Ethanol—An Abundant Biofuel
Ethanol is a renewable fuel made from various plant materials, collectively called “biomass”. It is usually made from corn and since corn can be planted and grown every year, ethanol is sustainable. Ethanol fuel contains ethyl alcohol, which is found in alcoholic beverages as well.
The data shown below features the top ethanol [for Heading 2207] importing and exporting countries of 2022 with their respective share values in percentage. The top countries are the Netherlands, the US, and more. Look at the graph to learn more about trade and the values.
The three founding members of the Global Biofuels Alliance—India, Brazil, and the USA account for about 85% of the global ethanol production and consume about 81% of the overall ethanol consumption worldwide. Being the alliance founders, these countries are major representatives.
The data below features quarterly values of ethanol exports by these countries from the third quarter of 2022 to the present year’s second quarter. Since it ranked in the twenty-first position among the top ethanol-exporting countries in 2022, India has a relatively shorter range of values.
Global Biofuels Alliance Summarised
The alliance was formed by the G20 Presidency this year—India, along with the collective support of other G20 invitee countries including Singapore, Bangladesh, Italy, USA, Brazil, Argentina, Mauritius, and the UAE on 9 September 2023 at the G20 Summit held in New Delhi.
The non-G20 participants who are interested in joining the Global Biofuels Alliance consist of Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda, and Finland. There are also reports of several international and multilateral organizations being interested as well.
The new initiative will pave the path for cleaner energy deployment and adoption, bringing new energy security and developing the technical infrastructure to promote the adoption of biofuels on a global scale with the support of the government of each country associated with GBA.
The organizations interested in GBA’s initiative are the World Bank, the Asian Development Bank, the World Economic Forum, the World LPG Organization, the UN Energy of All, UNIDO, the Biofutures Platform, the International Civil Aviation Organization, the International Energy Agency, the International Energy Forum, the International Renewable Energy Agency, and the World Biogas Association.