Kishan Karunakaran, CEO and Founder, Buyofuel shares his valuable insights on how India leverages Biofuels for Net Zero 2070, targeting aggressive 2030 climate goals via robust policy and circular economy initiatives.
India’s journey toward a sustainable energy future is accelerating, guided by ambitious climate commitments and an urgent need to decarbonize its growing economy. As the world’s third-largest emitter of greenhouse gases, India has pledged to reduce emissions intensity by 45 percent by 2030 (from 2005 levels) and achieve net zero by 2070. Achieving these milestones requires a multipronged energy transition and biofuels stand at the heart of this shift.
With energy demand projected to double by 2040, India faces the twin challenges of ensuring energy security and reducing carbon intensity. Biofuels—derived from biomass, used cooking oil (UCO), agricultural residues, and organic waste offer a renewable, domestically available alternative to fossil fuels. By blending biofuels with conventional fuels, India not only reduces its import dependency but also captures the untapped potential of its vast agricultural ecosystem.
The Indian government has laid a robust policy foundation for biofuels through initiatives like the National Policy on Biofuels (2018, revised 2022), which targets 20 percent ethanol blending in petrol and 5 percent biodiesel blending in diesel by 2030. These targets are being accelerated to 2025–26 for ethanol, reflecting the strong policy commitment.
"Biofuels symbolize the circular economy in action—transforming waste into valuable energy", - Kishan Karunakaran, CEO and Founder, Buyofuel
Additionally, schemes such as the Sustainable Alternative Towards Affordable Transportation (SATAT), GOBAR-Dhan, and the National Bioenergy Programme have mobilized investments across ethanol, compressed biogas, and biodiesel sectors. The integration of carbon credit frameworks further incentivizes industries to adopt cleaner fuels, aligning commercial interests with environmental imperatives.
The transport sector, responsible for nearly 10 percent of India’s total emissions, remains a major focus area for biofuel adoption. Ethanol blending has already reached over 12 percent, significantly reducing tailpipe emissions and improving fuel efficiency. Meanwhile, biodiesel is finding increasing application in logistics, public transport, and industrial heating, offering a drop-in solution for existing diesel engines.
Beyond transport, biofuels are increasingly being used to power industrial boilers, kilns, and furnaces, providing a viable path for heavy industries—such as cement, steel, and chemicals—to meet their Scope 1 emission targets.
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Biofuels symbolize the circular economy in action—transforming waste into valuable energy. The collection of UCO, crop residues, and organic waste creates decentralized employment opportunities and supports rural livelihoods. Decentralized biodiesel processors and village-level ethanol distilleries enable local value addition, reducing rural-urban energy disparities while cutting methane emissions from unmanaged waste.
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While India has made commendable progress, scaling up requires addressing challenges in feedstock aggregation, financing, and technology standardization. Digital biofuel marketplaces, innovative leasing models for small-scale processing units, and partnerships between private players and municipal bodies can bridge these gaps. By integrating policy, innovation, and participation, India can turn biofuels into a cornerstone of its 2030 climate strategy—powering growth while preserving the planet.
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