India–Brazil: Biofuels And Sustainable Aviation Fuel Cooperation

Policy Update
Asmeet Kaur

Background

India and Brazil are natural partners in the low-carbon bioenergy transition. Brazil has decades of experience in large-scale biofuel deployment, most famously its sugarcane-based ethanol program and a mature flex-fuel vehicle market, while India has moved aggressively in recent years to scale ethanol blending and to develop policy frameworks for sustainable aviation fuel (SAF). The two countries formalized energy and biofuel cooperation through a series of memoranda and joint statements: New Delhi’s Ministry of Petroleum and Natural Gas and its Brazilian counterparts highlighted SAF and biofuel collaboration in a joint statement on 21 September 2024, and broader bioenergy MOUs and bilateral instruments between India and Brazil date back several years and were reiterated during high-level exchanges in 2024–2025.

The strategic logic is straightforward. India is a fast-growing aviation market with an urgent decarbonization imperative; Brazil is a global leader in feedstock-to-biofuel value chains and has operational experience in producing low-cost, low-GHG ethanol at scale. A partnership that bridges Brazilian feedstock expertise, technology and investment with Indian market scale, refinery infrastructure and regulatory momentum offers a practical route to accelerate SAF availability in both hemispheres.

Functioning

India–Brazil cooperation on biofuels and SAF functions through several complementary channels: government-to-government frameworks, industry memoranda, technical exchanges and participation in multilateral initiatives.

At the government level, joint statements and MOUs create a policy architecture that enables dialogue on feedstock sustainability criteria, certification, testing and standards for SAF. The 2024 joint statement explicitly identified modes of cooperation that include catalysing regional value chains, ramping up SAF production, and harmonizing certification and distribution mechanisms — essential building blocks for cross-border SAF trade and “book-and-claim” schemes.

Technical and research linkages have also been institutionalized: Indian public sector refiners and research bodies have exchanged MOUs with Brazilian research institutions on bioenergy and conversion technologies (for example, cooperation involving Indian Oil Corporation and Brazilian research centers). These arrangements allow technology transfer, joint pilots (EG, waste-to-fuel pathways), and co-development of feedstock sustainability protocols that are sensitive to land-use and biodiversity concerns.

The industry needs to be involved. Brazil’s local SAF trials – such as initial “book-and-claim” pilots led by airlines and fuel companies – and India’s early state of industrialization (public and private refiner sector enthusiasm, university-industry collaboration) are resulting in on-the-ground demonstration projects that local authorities can back with money, purchasing targets, and providing regulation.

The worldwide environment is important as well: Intergovernmental bodies like the Global Biofuel Alliance (established during India’s G20 presidency) are opening up further channels to expand the good practices and draw foreign ‍‌‍‍‌‍‌‍‍‌investment.

Impact

Cooperation between India and Brazil on biofuels and SAF has multiple, interlocking impacts — environmental, economic and geopolitical.

Environmentally, scaling SAF reduces lifecycle greenhouse gas emissions from aviation when feedstocks and conversion pathways meet robust sustainability criteria. Brazil’s sugarcane ethanol is one of the lowest-carbon ethanol feedstocks globally, offering a model for low-GHG biofuel pathways; Coupling Brazilian expertise with Indian feedstock diversity (agricultural residues, municipal waste, non-food oilseeds) can expand low-carbon fuel supplies for regional aviation. The joint governmental emphasis on certifications and value chains intends to ensure the environmental integrity of any SAF that is produced or traded.

Economically, cooperation opens investment, trade and rural development pathways. For Brazil, diversified export markets for biofuel intermediates, technology and know-how reduce reliance on a limited set of buyers. For India, SAF and biofuel collaboration can support meeting domestic ethanol-blending targets, foster new industrial clusters (waste-to-fuel, integrated biorefineries), and generate rural employment through feedstock supply chains. Strategic supply partnerships can also mitigate fuel price volatility for airlines by providing alternative, domestically supported supply lines.

Geopolitically, stronger India–Brazil ties in low-carbon fuels help both countries exercise leadership in shaping global biofuel governance and standards. As large developing economies with agricultural footprints, their joint positions in forums such as the G20 and the Global Biofuel Alliance can influence which sustainability metrics and trade rules become mainstream, a non-trivial leverage point as SAF policy architecture and carbon markets evolve.

Performance

Assessing performance requires distinguishing policy intent, demonstration activity and commercial scaling each has progressed unevenly.

On policy intent and diplomatic signaling, performance has been strong: joint statements and MOUs since 2019 (and reiterated in 2024–2025 high-level exchanges) show sustained political will to prioritize bioenergy cooperation and to frame SAF as a shared strategic objective. The public documentation of these commitments is a positive indicator that both capitals treat the issue as part of their energy diplomacy.

On demonstrations and pilots, progress is tangible but still nascent. Brazil has operational experience with SAF pilots and book-and-claim trials (for example, Latin America’s first book-and-claim transaction involving Gol and Vibra in mid-2024), illustrating the commercial mechanics and governance challenges of non-physical SAF accounting. India has begun institutional measures (research partnerships, industry MOUs and university–aircraft maker collaborations) to replicate and adapt these models domestically, but large-scale, continuous SAF production in India remains in early stages.

On commercial scaling, both countries face constraints: feedstock competition with food uses, capital intensity of advanced conversion technologies, and the still-limited global SAF market that keeps offtake uncertain. Technical performance metrics (yields, GHG savings, lifecycle assessments) are promising for certain pathways, but translating pilots into gigalitres of SAF will require stronger policy incentives (mandates, blending targets, procurement commitments), financing instruments and clear international certification that enables trade and “book & claim” mechanisms at scale.

Way Forward

To turn policy momentum into measurable SAF volumes and lasting low-carbon impact, India and Brazil should pursue a pragmatic, multi-track agenda that accelerates supply, reduces risk and ensures sustainability.

Operationalize certification and harmonize sustainability criteria. Establish a joint technical working group to align lifecycle GHG accounting, land-use change methodologies and feedstock eligibility rules so SAF from either country is tradeable with confidence. Harmonized criteria will lower transaction costs for international buyers and support book-and-claim systems.
Scale demonstration projects with co-financing. Leverage public finance (multilateral development banks, green bonds) and blended finance to derisk first-of-a-kind commercial SAF plants in India and Brazil. Bilateral co-investment vehicles or concessional lines could mobilize private capital and ensure demonstrations focus on diverse feedstocks (sugarcane residues, municipal solid waste, used cooking oil, non-food oilseeds).
Create demand-pull via procurement and mandates. Governments and national carriers should issue time-bound procurement commitments and explore progressive blending targets for aviation where feasible. Public procurement and airport-level incentives can provide the guaranteed offtake needed to attract downstream investment. Mechanisms such as book-and-claim should be piloted with rigorous oversight to avoid greenwashing.
Promote technology exchange and skills transfer. Brazil’s operational lessons in feedstock logistics and ethanol economics should be embedded into India’s industrial plans through exchange programs, joint R&D and transfer of best practices in agronomy, processing and refinery co-processing of bio-feedstocks. Collaborative training will ensure local workforces in India can operate advanced biorefineries.
Safeguard sustainability and social inclusion. Biofuel scale-up must be accompanied by land-use safeguards, smallholder inclusion strategies, and transparent benefit-sharing arrangements. Both countries should pilot supply chain traceability and social impact monitoring to prevent adverse outcomes (eg, indirect land-use change or inequitable value capture).
Link to global markets and carbon pricing mechanisms. Position India–Brazil SAF as supply nodes in the global SAF ecosystem by negotiating mutual recognition of certifications and participating in international platforms (eg, Global Biofuel Alliance). Where appropriate, integrate SAF credits with credible carbon markets to channel finance toward the highest-integrity SAF projects.

Conclusion

India and Brazil bring complementary assets to the challenge of decarbonizing aviation: Brazil’s proven feedstock and industrial experience, and India’s growing aviation demand, refinery capabilities and policy momentum. The diplomatic commitments and MOUs of recent years have established a sound platform; the next phase must convert that platform into concrete SAF gallons through harmonized standards, financed demonstrations, demand-pull mechanisms and safeguards that prioritize sustainability and social inclusion. If executed well, India–Brazil cooperation on biofuels and SAF can not only cut aviation emissions regionally but also shape global biofuel governance offering a model of South–South cooperation that pairs technical competence with market scale.

References

Embassy of India, Brasília. (2025, July). Agreements and MOUs between India and Brazil as of July 25, 2025 . https://www.eoibrasilia.gov.in/pdf/Agreements%20and%20MoUs%20between%20India%20and%20Brazil%20as%20on%2025.7.2025.pdf
World Energy. (2024, June 19). Brazil’s Gol, Vibra complete first SAF ‘book-and-claim’ in Latin America . https://www.world-energy.org/article/42959.html
Valor International. (2025, March 26). Vibra becomes first company to offer sustainable aviation fuel in Brazil . https://valorinternational.globo.com/business/news/2025/03/26/vibra-becomes-first-company-to-offer-sustainable-aviation-fuel-in-brazil.ghtml
Embassy of India, Brasília. (2025, July 8). Joint Statement: India and Brazil – Two Great Nations with Higher Purposes . https://www.eoibrasilia.gov.in/pr-10-07-25.php
Ministry of External Affairs, Government of India. (2025). India-Brazil Relations . https://www.mea.gov.in/Portal/ForeignRelation/India-Brazil_Relations.pdf
Economic Times. (2024, September 21). India, Brazil recognize biofuels as key component of global energy transition . ETGovernment. https://government.economictimes.indiatimes.com/news/policy/india-brazil-recognise-biofuels-as-key-component-of-global-energy-transition/113543554

About the Author

Asmeet Kaur is a researcher at IMPRI and an undergraduate student at Indraprastha College for Women, Delhi University, with a keen interest in Public policy and administration.

Acknowledgement: The author extends her sincere gratitude to the IMPRI team and Ms. Aasthaba Jadeja for her invaluable guidance throughout the process.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.