Y B Ramakrishna, Senior Vice President, Indian Federation of Green Energy (IFGE) & Former Chairman, National Working Group on Biofuels, Ministry of Petroleum & Natural Gas

Bioenergy can be a significant contributor to India’s NetZero target by 2070. We have the resources (feedstocks) such as agricultural residues, municipal solid waste (MSW), Animal wastes, Industrial organic wastes in abundance all of which can be converted to Energy and many other useful byproducts. We have our own home grown and imported technologies at different maturity levels which can be mapped on to these resources which could go a long way in reducing our dependence on imported fossil fuels. Many of the byproducts from the bioenergy sector can replace many materials and chemicals being currently produced from fossil sources. The bio refinery approach would give us zero waste, multiple low carbon fuels, materials and chemicals.

It is estimated that the total energy consumed by India from all sources put together in terms of carbon equivalent would be 350 MMT. The carbon available in the wasted resources mentioned would be in excess of 450 MMT. The challenge is how do we make it accessible and available to the industry and making technologies commercially available. For achieving the net zero target by 2070 and for the growth of the Bioenergy sector India needs support at policy and industry level.

Scientific pricing policy

A scientific pricing policy for the growth of the bioenergy sector involves establishing costeffective, long-term, and market-sensitive pricing mechanisms that balance biomass feedstock supply and demand, incentivise low-carbon technologies, and support sustainable bioenergy deployment. Pricing that reflects the costs of biomass collection, transportation, and processing, while accounting for competition in biomass supply and the marginal cost structures of bioenergy producers. Policies should be technology-agnostic and promote fuels with lower carbon intensity through performance standards and mandates, enabling efficient market-based incentives for bioenergy. Government interventions like administered price mechanisms (e.g., for ethanol procurement), tax relief, subsidies, and support schemes help stabilise prices and attract private investment for scale-up. Long-term and predictable pricing policies are critical to making bioenergy financially viable compared to fossil fuels, which often enjoy subsidies that distort market competition.

Opening up carbon markets

Opening up carbon markets in India and beyond involves domestic development of structured carbon credit trading schemes and cross-border trading mechanisms, driven by government policy, international climate commitments, and trade realities. India’s carbon credit market has seen rapid growth in 2025, supported by regulatory clarity such as the Energy Conservation (Amendment) Act 2022 and forthcoming Carbon Credit Trading Scheme (CCTS) expected to become operational by 2026. The market includes both voluntary and compliance-based frameworks, with sectors like renewable energy, agriculture, and waste management participating. A centralised carbon credit registry has been launched, and over 250 million carbon credits are expected to be traded domestically in 2025. The government offers incentives like tax rebates and subsidies, while large corporates commit to net-zero targets, fuelling demand.

To read more click on the link:https://agrospectrumindia.com/e-magazine