U.S., India Lead Biofuel Innovation to Decarbonize Aviation, Shipping
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Biofuels, especially those from waste and non-food crops, are gaining interest to decarbonize hard-to-abate sectors like aviation and shipping.
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The U.S. and India lead in biofuel innovation and investment, with the U.S. allocating $9.4 billion through the Inflation Reduction Act and India launching the Global Biofuel Alliance.
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Biofuels are expected to play a major role in the green transition by powering planes, ships, and industry where electrification is not feasible.
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Demand for biofuels rose to 4.3 exajoules in 2022, surpassing pre-pandemic levels, and is projected to reach 10 exajoules by 2030.
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The EU lacks a clear, long-term biofuels strategy which could undermine climate goals and discourage private investment, according to the European Court of Auditors.