A Review of the National Biofuel Policy in India: A critique of the Need to Promote Alternative Feedstocks. Working Paper Series no. 34

Energy is a critical input for economic growth and sustainable development in both developed and developing countries. The world’s energy requirement for transportation is met from nonrenewable fossil fuels. The sharp rise in crude oil prices from US$20 a barrel in 2002 to almost US$100 (even touching US$140 before stabilizing at around US$80) has forced nations to seriously consider alternative energy sources that are renewable and non-polluting. In the face of shrinking supplies and rising demand, oil prices are expected to continue to rise. In addition, growing concerns about human-induced climate change, as evidenced by rising temperatures and environmental pollution, are further driving the impetus for non-polluting energy sources. One such source is ethanol from plant biomass/grain and biodiesel from processing edible and nonedible vegetable oils