Greening the Indian transport sector: Role of biodiesel

Abstract

India being the world's fastest growing major economy requires to substantially boost up the availability of energy for sustaining high rate of economic growth. Critical dependence on imported forms of fossil energy can be detrimental in the long run. With around 51% of the total demand for petroleum products, the transportation sector is likely to be among the most vulnerable sectors to petroleum supply shocks. In order to improve energy security and also to reduce the emission intensity of GDP, indigenously developed renewables are urgently required. Considering the quantum of diesel use in India and associated environmental degradation, biodiesel appears to be a very promising alternative which can be used and distributed by utilizing existing infrastructure. The Government has taken serious note of the situation and has introduced policies for developement and use of biodiesel. However, the biodiesel industry in India is still in its infancy requiring careful examination and addressing of policy lacunae.