Why in News?

• The Union Cabinet has given its approval for the signing of Memorandum of Understanding between the Republic of India and the Federative Republic of Brazil on Bioenergy Cooperation.

Highlights:

•  The 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.
•  Exchange of information on agricultural practices.
•  Policies regarding biomass for bioenergy, including sugarcane, corn, rice, oil-crops, and lignocellulosic crops. [Lignocellulose refers to plant dry matter (biomass)].
•  Policies for reducing greenhouse gas emission levels based on the use of biofuels.
•  Using cycle analysis and the issuance of emissions reduction certificates traded in an organised 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.

India and Brazil:

•  India and Brazil are major consumers of energy in the world.
•  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% of Brazil’s energy mix.
•  India also has a strong focus in the area of biofuels and has set a target to achieve 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2030 with the announcement of the new policy on Biofuels in 2018.