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Expanding sustainable biofuels

Most new biofuel demand comes from emerging economies, especially Brazil, Indonesia and India.
All three countries have robust biofuel policies, rising transport fuel demand and abundant feedstock potential. Ethanol and biodiesel use have expanded the most in these regions.
Although advanced economies including the European Union, the United States, Canada and Japan are also strengthening their transport policies, biofuels growth is constrained by factors such as rising electric vehicle adoption, vehicle efficiency improvements, technical limitations and high blending costs in some markets.
Renewable diesel and sustainable aviation fuel (SAF) are the primary growth segments in these regions.
Biofuel use is accelerating
India is now the world’s third largest producer and consumer of ethanol thanks to an almost tripling in production over the past five years.
It has potential to expand further with the right policies, keeping costs in check and securing sustainable feedstocks.
In 2018 India released its National Policy on Biofuels which set blending targets for ethanol (20% blending by 2030) and biodiesel (5% by...

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