Recently, the Indian government signed a MoU with the United States aimed at strengthening development of bio fuels in India. Focused on advancing first and generation fuel crops, conversion technologies, and decentralized production processes the MoU suggests a promising outlook in India. But bio fuels in India has had a bumpy path. Indian officials have sought bio fuel avenues in their pursuit to reach energy security and strengthen its agriculture sector role yet there have also been significant policy setbacks which have prevented a unified national policy.

Lack of political unity and regulation towards bio fuel mission
Poorly structured regulations and politics have limited the bio fuel potential in India. Despite regulations in place to promote blended fuels, problems with state to state tariffs have made this regulation more of a hindrancethan a catalyst for bio fuels producers. In the past two years, the Government sought to establish a national bio fuel policy with an ambitious agenda such as requiring a 20% ethanol blend in petrol and diesel by 2017. The policy faced significant struggles in the political arena over the policy’s handling of commercialization of bio fuels. Since then, the mission has reportedly been shelved.

Windows of opportunity for bio fuels in India

Photo credit: Centre for Jatropha Promotion & Biodiesel.

To add, there is broader debate over promoting bio fuels as alternative energy sources in general. While biofuels can provide an avenue of energy security, reducing energy dependency on imported oil, they place significant pressures on natural resources (land, water, etc). Currently, bio fuels (predominantly ethanol-based) in India is mainly sourced from water intensive sugar cane crops. Proposals to encourage food crops for fuel production have been viewed negativelyby the Indian officials, yet the promotion of non edible crops such as jatropha have gained considerable favorable attention.
India’s government-owned railway system has encouraged the cultivation of jatropha on railway wastelands
through leasing schemes. Such a scheme has been viewed positively by some who believe making bio fuels work in India is a matter of thinking innovatively on various aspects of bio fuels policy: type of crop, land usage, and appropriate regulations including inclusion in CDM schemes. This is the view sought after private enterprise, Mission Biofuel India, which is seeking government approval for a jatropha-sourced biofuel refinery in the state of Orissa.

Indian officials need to better articulate the potential of bio fuels in India. This is no easy task as the debate over biofuels continues to be heated in scientific and political arenas. In this way the promotion of collaborative research and technical over bio fuels is welcoming. On another front, Indian officials must seriously review current policies including subsidy and tariff mechanisms at the national and state level that cover current/future bio fuel crops. This evaluation is needed because India has the opportunity to make certain bio fuel crops and processes advantageous but only through proper regulation which will ensure environmental safeguards and social benefits which currently is lacking.

Brazilian Minister for the Environment Carlos Minc launched the country’s national strategy to address climate change, signed by President Lola on 1st December 2008. Whilst the developing country previously held a defensive position, the launch of this strategy represents a shift to a more leadership position, with which they hope to influence the G77 and developed countries to also lead. Brazil echo the sentiments in Simon’s previous blog, that COP 14 has become a waiting game, as everyone waits for other’s to make the first move.

Key commitments from the National Climate Change Action Plan include:

•       Reduce deforestation in the Amazon by 70% by 2020 – saving 4.8bn tones of carbon over the 12 years. This is more than the target all countries agreed to reduce at Kyoto combined.
•       Increasing concentrations of ethanol in the fuel mix for cars by 11% each year, reducing a further 500m tones of carbon over 10 years. Additionally, this will be achieved without any impact on land used by indigenous people or for food production.
•       Increase in co-generation from 0.5% to 10% – improving efficiencies and representing a saving of around 100m tones of carbon
•       Increase in hydroelectric energy generation – to replace more of exiting energy supplies from fossil fuels
•       Plans to increase reforestation from 5 – 11 hectares, doubling the current rate of reforestation, including in indigenous areas
•       Planting more trees at a faster rate than those being chopped down – till at least 2015
•       Certification of wood and forest management to fight illegal sales of wood from the Amazon
•       Specific resources made available to fund adaptation and fight desertification – a key issues for north-eastern areas of Brazil, home to 50m people.
•       Amazon Fund created to fight deforestation in the Amazon- supported by 1bn Euros, from Norway, Germany and £100m from the UK

These commitments represent Brazil’s commendable decision to take a more leadership position, and the Minister for Environment called for collaborative action and further efforts from other developed and developing countries, to encourage the EU to adopt its higher target of 30% by 2020 – by meeting the condition of support from other nations.

Brazil has created National Climate Fund, which will be funded by 10% of the revenues from the petroleum industry. In addition, their ambitious programme is expected to be funded by their National Bank for Social and Economic Development, and the Minister of Environment felt this needed no further incentives at the moment.

Whilst Brazil’s leadership is in combating climate change is commendable, following the lead of Mexico’s ambitious intention for 50% reduction by 2050 earlier this week, it is interesting to note that the country has authorized the construction of their third nuclear power plant, using German technology. A further three are expected, but details are to be finalized. Brazil has strongly opposed CCS in CDM throughout the COP process, yet it is interesting to see their commitment and deployment of a similarly controversial technology.