India, Brazil eye year-end date for finalising GBA headquarters, charter

More than a year after the alliance was launched, the bloc has no physical, diplomatic presence

India and Brazil have taken up the delay in setting up the Global Biofuel Alliance (GBA) headquarters and establishing a charter, and agreed to establish both by the end of the current year, sources said.

The issue was discussed during Petroleum Minister Hardeep Singh Puri's meeting with his counterpart in Brasilia last month, they added.

The GBA was launched on September 9, 2023, on the sidelines of the G20 Summit in New Delhi.

But more than a year later, it remains without a charter, a fixed governance structure, or a permanent secretariat.

“Both sides recognised the importance of quickly resolving the pending work on the GBA. A year-end date is being tentatively eyed for clearing the pending work on securing a headquarters, and establishing a charter,” an official source said.

However, the multi-stakeholder alliance of governments, international organisations and industries has adopted a work plan.

Focussing on assessing country landscapes, drafting policy frameworks, and conducting biofuel workshops were identified as immediate goals for the GBA.

These goals were discussed at a key meeting of the body held on the sidelines of the G7 deliberations in Brazil in April, a Petroleum and Natural Gas Ministry official said.

India has also suggested three potential workstreams — to support biofuel trade, increase awareness about them, and identify support mechanisms for enhanced adoption of biofuels.

“These developments also came up during the latest visit. Both countries feel there has been good progress on the segmented approach towards GBA goals that has been taken so far,” the official added.

Interest growing

The GBA aims to expedite uptake of biofuels worldwide, set standards for biofuel, expand the size of formal biofuel markets and better map demand and supply.

India and Brazil were the main drivers of the 24-nation grouping, which had seen 24 diverse countries, from Singapore, Argentina, and UAE, to Mauritius and Bangladesh signing up.

Among the G7 nations, Italy and the United States are part of the alliance.

While major energy producers such as Russia, China and Saudi Arabia have remained unconvinced of the merits of joining the bloc, it has generated special interest from African nations.

Apart from G20 member South Africa, non-G20 nations like Kenya and Uganda also make up the list, while Tanzania is keen on joining, sources have said.

Caribbean island nation Jamaica has been the latest to show an interest to join the GBA, the Ministry of External Affairs had said on Tuesday.

According to the International Energy Agency (IEA), biofuels have the potential to grow by 3.5-5-times by 2050. This is due to the net-zero targets, thus creating a huge opportunity for India.

A record 171.2 billion litres of biofuels were procured globally in the year 2022, with India contributing just 2.7 per cent or 4.6 billion litres.

Despite this, India remains the third-largest producer of ethanol, after the United States (US) and Brazil, IEA said.

By aligning with both these nations in the GBA, India seeks to rectify this disparity, given that it is among the largest producers of biofuel feedstock, including sugarcane, maize, and vegetable oils.

Quick rundown
 

> Global Biofuel Alliance, launched in 2023, still lacks a formal governance setup

> India suggested workstreams to boost biofuel trade and adoption

> GBA has 24 member nations, with growing interest from Africa and the Caribbean

> Biofuels could grow 5x by 2050, creating big opportunities for India