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GREEN FUELS CBAM DISCUSSIONS

Global Biofuels Alliance launched at G20 Summit India mulls carbon tax repatriation from EU

The G20 leaders launched the Glo- The three founding members of India wants the European Union meeting. As of now, such revenues fl ow tonne (approx) of CO , “which will
2
bal Biofuel Alliance (GBA), a grouping alliance, USA (52 percent), Brazil (30 (EU) to repatriate revenue that the latter into the EU budget to meet EU’s climate progressively increase”.
of more than 30 countries and inter- percent) and India (3 percent), and has collected as carbon tax from goals.
national institutions, to facilitate adoption- contribute about 85 percent share in Indian exporters, once the Carbon Steel and aluminium exports are said
of biofuels, thereby unlocking bioenergy production and about 81 percent in Border Adjustment Mechanism (CBAM) Offi cials says, the UNFCCC allows to be amongst the worst hit sectors with
access in emerging economies. consumption of ethanol. The global kicks-in. The repatriated revenue will be equivalence with EU of both emission the CBAM reporting mechanism coming
ethanol market was valued at $99.06-bn used in India for funding the country’s reduction and carbon pricing; while into effect.
A total of 19 countries and 12 inter- Apart from India, Brazil and the in 2022 and is predicted to grow at a climate objectives, media reports quoted they point out that CBAM continues to
national organizations have so far US, the other G20 member countries CAGR of 5.1% by 2032 and surpass offi cials, who are part of the discussions, be “against WTO’s principles”. These India’s demands
agreed to join the alliance, including supporting the initiative are Argentina, $162.12-bn by 2032. as saying. do not allow for recognition of pro- As per the offi cial, India’s demands
both G20 members and non-member Canada, Italy, and South Africa. duct differentiation based on “embedded so far include exemption of MSME
countries. India, Brazil and the US are Bangladesh, Singapore, Mauritius, and According to estimates from the According to the offi cials, at a re- emissions”. sector from EU-CBAM (one that has
the founding members of the alliance. the UAE are the G20 invitee countries. International Energy Agency (IEA), cent stakeholder meeting carried out by likely been shot down) and linkage of
The non-G20 interested in joining the global biofuel production would need one of the key ministries, the various “EU is not looking at equivalence of Indian CCTS (Carbon Credit Trading
Prime Minister Narendra Modi alliance are Iceland, Kenya, Guyana, to triple by 2030 to put the world’s options for consideration include a de- emission reductions, but equivalence of System), which is still in the works –
launched the alliance in the presence Paraguay, Seychelles, Sri Lanka, and energy systems on track toward net mand for waiver or exemption as part price,” the offi cial said. The European with EU-CCTS and it includes proce-
of the US President Joe Biden, Brazi- Uganda and Finland. zero emissions by 2050. of Free Trade Agreement (FTA) negoti- Commission adopted the rules govern- dural and technical harmonisation. The
lian President Luiz Inacio da Silva, ations. ing the implementation of the CBAM CBAM regulations envisage a possi-
Argentinian President Alberto Angel Further, World Bank, Asian Deve- In its ambitious energy transition during its transitional phase, which bility of agreement with third coun-
Fernández, Italian Prime Minister lopment Bank, World Economic Forum, journey, India has committed to achiev- During the meeting, it was said starts on October 1, “and runs until the tries with a view to taking into account
Giorgia Meloni, Bangladesh Prime World LPG Organization, UN Energy ing carbon neutrality by 2070. India that India is compliant with the United end of 2025”. carbon pricing. Offi cials said, carbon
Minister Sheikh Hasina, among others. for All, UNIDO, Biofutures Platform, also has an ambitious biofuel roadmap. Nations Framework Convention on pricing under Indian framework may
“The launch of Global Biofuels International Civil Aviation Organiza- The government has advanced its target Climate Change (UNFCCC obligations). In the CBAM’s transitional phase, not however be equivalent to EU; and
Alliance marks a watershed moment tion, International Energy Agency, Inter- to achieve 20% ethanol blending in pet- And a waiver or exemption from com- “traders will only have to report on the hence there could be limited benefi ts.
in our quest towards sustainability and national Energy Forum, International rol by 2025-26 from an earlier target of pliance with CBAM is likely to be built emissions embedded in their imports
clean energy. I thank the member Renewable Energy Agency, World 2030. The target of petrol supplies with into the ongoing FTA discussions. If subject to the mechanism without paying It has also sought accreditation of
nations who have joined this Alliance,” Biogas Association are the interested 10% ethanol blending was achieved not, CBAM revenue repatriation will any fi nancial adjustment.” India’s accredited carbon verifi ers by EU
Mr. Modi said after the launch of the international and multilateral organi- in June last year, ahead of the original be proposed. for “embedded emissions verifi cation”.
India-led initiative. sations. schedule of November 2022. From January 1, 2026, the EU im- Such an accreditation will allow cost-
“The EU should agree revenues porters will have to buy CBAM certi- advantage for Indian verifi ers. Currently
collected by EU from imports on India fi cates, corresponding to the embedded only accredited verifi ers under EU
Dr. Bipul Saha elected to the Executive Board of IUPAC should be segregated and repatriated to emissions above the EU-ETS bench- 2018/2067 can verify greenhouse gas
India to use for its climate objectives,” mark levels. Currently, the price of emissions. There are some subsidiaries
The International Union of Pure from 56 countries voted to Journal. He has also been an offi cial reportedly said during the such credits is pegged at Euro 85 per of these EU certifi ed verifi ers in India.
and Applied Chemistry (IUPAC) has elect 6 Executive Board in the editorial advisory
recently elected Dr. Bipul Saha of Hydera- members. There were more board of global scientifi c Exide Industries invests over Rs. 100-crore in
bad as an Executive Board member. than 2,200 participants in magazines like Agri Busi-
the Congress. The Execu- ness Global (USA) and advanced chemistry battery cells making arm
Founded more than 100 years ago, tive Committee Members Farm Chemicals Inter-
IUPAC is the largest global organisa- of IUPAC are elected based national (USA). He was Battery maker Exide Industries Ltd. (EESL) on a rights basis. There is no Rs. 59.81-crore in the year ended March
tion of chemistry professionals with on the candidate’s leader- editor of Indian Society for said it has invested over Rs. 100-crore change in the shareholding percentage 31, the fi ling added. The company
members from 56 countries. At the apex ship qualities, vision for the Environmental Science & in its wholly-owned arm, Exide Energy of the company in EESL pursuant to is into manufacturing battery cells of
of IUPAC organisation is the ‘IUPAC future etc. Technology Newsletter. Solutions Ltd., which is into manufac- such acquisition, it said. advanced chemistry and form factor,
Executive Board’. The members of the He will represent IUPAC turing of advanced chemistry battery including but not limited to cylindrical,
Executive Board were elected during Dr. Saha is currently in the United Nations’ “Inter- cells. In a regulatory fi ling, Exide In- EESL has a paid-up equity share pouch, prismatic battery cells as well as
IUPAC General Assembly and World editorial advisory board member of national Conference on Chemicals dustries said it made the investment by capital of Rs. 374.40-crore as on date manufacturing, assembling, selling bat-
Chemistry Congress held recently American Chemical Society’s, ACS Management (ICCM5)” to be held in way of subscription in the equity share with net worth of Rs. 655.20-crore as on tery modules, battery packs and other
in Hague (Netherlands). Delegates Agricultural Science and Technology Bonn, Germany this year. capital of Exide Energy Solutions Ltd. March 31, 2023 and it posted a net loss of related activities, the company said.

146 Chemical Weekly September 19, 2023 Chemical Weekly September 19, 2023 147

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