Cabinet approves MoU between India and Brazil on bioenergy cooperation

India and Brazil are major consumers of energy in the world and Brazil is one of the most important trading partners of India in the entire LAC (Latin America and the Caribbean) region. Brazil is currently the world’s second-largest producer and consumer of biofuels. Biofuels and bioelectricity accounted for 18 percent of Brazil’s energy mix.

India also has a strong focus in the area of biofuels and has set a target to achieve 20 percent blending of ethanol in petrol and 5 percent blending of biodiesel in diesel fuel by 2030 with the announcement of the new policy on Biofuels in 2018.

During the meeting between Prime Minister Shri Narendra Modi and President of Brazil in India in 2016, the two sides agreed to cooperate on research and development (R&D) of renewable energies, as well as in the field of second-generation biofuels.

In this regard, the approved Memorandum of Understanding (MoU) provides a framework to cooperate and promote investment in biofuel, bioelectricity and biogas supply-chains, including feedstock, industrial conversion, distribution, and end-use sectors.

According to a statement on December 24, 2019, a few other “salient features” of the MoU include:

• the exchange of information on agricultural practices and policies regarding biomass for bioenergy, including sugarcane, corn, rice, oil-crops, and lignocellulosic crops;
• policies for reducing greenhouse gas (GHG) emissions levels based on the use of biofuels, using cycle analysis and the issuance of emissions reduction certificates traded in an organized market;
• trade aspects and the promotion of a joint position to address market access and sustainability of biofuels, including advanced biofuels;
• engine and fuel modifications/adjustments that may be necessary for different percentages of biofuels blended with fossil fuels.