Exploring the promise and pitfalls of biofuels, this piece highlights current feedstocks, policy challenges, sustainability concerns and the urgent need for systemic reform
The Promise and the Challenge of Biofuels
Biofuels have become a critical component of global efforts to decarbonize transportation and reduce reliance on fossil fuels. Central to this transition are biofuel feedstocks — the raw materials used to produce bioethanol, biodiesel, renewable diesel, and aviation biofuels. Currently, the dominant feedstocks include first-generation crops such as corn, sugarcane, soy, rapeseed, and palm oil, which are energy-dense but raise sustainability concerns. On the other hand, used cooking oil (UCO), waste animal fats, and lignocellulosic biomass offer more sustainable alternatives, but their supply is limited. According to the International Energy Agency (IEA), the availability of waste and residue feedstocks is constrained globally, and large-scale production of cellulosic biofuels is still nascent despite decades of R&D.
Growing Demand and Feedstock Bottlenecks
Demand for biofuels continues to surge. IEA estimates project that global biofuel production will grow by 30 per cent between 2023 and 2028, reaching nearly 200 billion liters. Much of this growth will be driven by renewable diesel and sustainable aviation fuel, particularly in the United States, European Union, Brazil, and Indonesia. However, this trajectory implies a sharp increase in feedstock demand, with projections suggesting over 700 million tonnes of feedstock may be required by 2030. This creates a growing mismatch between biofuel policy ambitions and available sustainable biomass, underscoring the urgent need to diversify feedstocks and reform policies to promote more resilient supply chains.
Biofuel Policy in the United States: Progress and Limitations
In the United States, biofuel policy is primarily governed by the Renewable Fuel Standard (RFS), introduced through the Energy Policy Acts of 2005 and 2007. It mandates blending levels of up to 36 billion gallons per year by 2022, including significant volumes from advanced and cellulosic sources. Yet, cellulosic biofuels have consistently fallen short of their targets due to economic and technical hurdles. Recent US Environmental Protection Agency (EPA) updates have raised annual Renewable Identification Number (RIN) targets for cellulosic and biomass-based diesel fuels, with 2025 targets including 1.38 billion RINs for cellulosic biofuels and over 4.45 billion gallons for biomass diesel. However, compliance has been challenged by small refinery exemptions, volatile market signals, and an underdeveloped supply of advanced feedstocks. To address these gaps, the US biofuel industry has pushed for stronger mandates. In April 2025, industry coalitions proposed a biomass-based diesel blending target of 5.25 billion gallons for 2026 — up from 3.35 billion in 2025. EPA has also proposed assigning lower RIN values to imported fuels (50 per cent) compared to domestic feedstocks (100 per cent), a move aimed at enhancing national energy security and incentivising local production. Nonetheless, critics argue that the policy still favors conventional feedstocks and fails to provide sufficient support for truly low-carbon alternatives like algae, agricultural residues, or woody biomass.
The European Union’s Sustainability-Focused Approach
The European Union has taken a more sustainability-centered approach. The Renewable Energy Directive (RED) initially aimed for a 10 per cent renewable energy share in transport fuels by 2020, later expanded under RED II and RED III. The EU has implemented stringent sustainability criteria to reduce the indirect land-use change (ILUC) impacts associated with biofuel crops. As a result, the EU is gradually phasing out palm oil and soybean-based biodiesel due to their links to deforestation and biodiversity loss. Increasingly, the focus is shifting toward advanced biofuels derived from municipal waste, agricultural residues, and non-edible crops.
India’s Ethanol Revolution and Global Leadership
India presents a contrasting but instructive example. The country has aggressively expanded its ethanol blending program, moving from 5 per cent in 2014 to nearly 20 per cent by 2025, facilitated by policy incentives, guaranteed procurement, and improved sugarcane productivity. According to Indian Government reports and media sources like The Times of India, this transition has saved substantial foreign exchange and reduced vehicular emissions. India is also promoting non-food feedstocks such as jatropha and sweet sorghum for biodiesel, although adoption has lagged behind expectations due to agronomic and economic constraints. Importantly, India spearheaded the launch of the Global Biofuels Alliance during its G20 presidency in 2023, aiming to create harmonised sustainability standards and support R&D collaboration among member countries.
Amity University’s Contribution to Biofuel Innovation
Amity University is at the forefront of biofuel research and innovation, contributing to India’s clean energy mission. Across its campuses, researchers are working on second-generation biofuels derived from agricultural residues, microalgae, and industrial waste to produce ethanol, biodiesel, and biohydrogen.
Amity has developed technologies in microbial fermentation for lignocellulosic ethanol production, biogas generation from agro-waste, and enzymatic transesterification for biodiesel. Collaborative projects with industry and international agencies have focused on valorization of biowaste, including algal biomass for aviation biofuels. Multiple patents filed by Amity researchers on novel biofuel production methods, alongside high-impact publications, demonstrate its unique contributions in sustainable energy research. These initiatives align with India’s ethanol blending targets and global efforts to accelerate the transition to low-carbon fuels.
Sustainability Concerns and Environmental Risks
Nevertheless, challenges abound, particularly in emerging economies where governance mechanisms to ensure sustainable sourcing are still developing. Reports from investigative journalism and non-profit groups, such as a 2024 Associated Press exposé, highlight deforestation in Indonesia’s Papua and Kalimantan provinces where vast tracts of forest are being cleared for sugarcane ethanol plantations. Such land-use changes could release over 300 million tonnes of CO2 — undermining the very climate benefits biofuels aim to deliver. These cases exemplify the need for better land-use monitoring, lifecycle carbon accounting, and binding sustainability regulations at both national and international levels.
Needed Policy Reforms for a Sustainable Future
To close the gap between biofuel potential and reality, several policy reforms are necessary. First, Governments should prioritize investment in advanced feedstock supply chains and associated technologies. This includes supporting R&D, pilot projects, and scale-up funding for cellulosic ethanol, biomass-to-liquid fuels (BTL), and algae-based biofuels. Tiered blending mandates — where higher incentives are provided for low-carbon feedstocks — can redirect market demand away from conventional crops toward waste and residue-based options.
Second, sustainability safeguards must be strengthened. Lifecycle emissions, including ILUC, must be factored into carbon accounting. Land-use monitoring systems such as satellite-based platforms and blockchain-based traceability tools should be deployed to ensure compliance and transparency. Such systems are already being piloted in the EU and could be adopted globally via multilateral agreements or platforms like the Global Biofuels Alliance.
Third, market signals must be improved. This includes reforming the RIN system in the US to provide price stability, phasing out small refinery exemptions that distort the market, and introducing price floors for advanced biofuels to de-risk investment. Expanding the collection and aggregation of waste oils and residues can also increase feedstock availability, especially in urban settings. Additionally, marginal or degraded lands should be utilised for cultivating non-edible energy crops like miscanthus, switchgrass, and pongamia.
Aligning Ambition with Action
International cooperation will be key. Harmonised sustainability standards, data-sharing, and capacity-building in the Global South can accelerate the shift to sustainable biofuels without repeating past mistakes. The Global Biofuels Alliance, with India, Brazil, the US, and other major players at the helm, can play a pivotal role in this transformation. It offers a platform for aligning targets, certifying practices, and coordinating investment in next-generation biofuel pathways.
In conclusion, the future of biofuels hinges on the successful deployment of sustainable feedstocks and the smart design of policies that reward low-carbon, high-impact solutions. First-generation feedstocks will continue to play a role in the short term, but their environmental and social costs limit long-term scalability. The next frontier lies in expanding advanced feedstocks, enforcing robust sustainability norms, and fostering international alignment to ensure that biofuels serve as a genuine solution in the global climate and energy transition.
(The writer is Prof (Dr) Nutan Kaushik, Director General — Amity Food and Agriculture Foundation, Amity University)