Ethanol carries less energy than petrol, so a car burns more of it to cover the same distance. Owners complain that the now ubiquitous E20 fuel cuts their mileage as a result
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The Independent Climate
Landmark court victory for car owner fuels growing row over India’s ethanol policy
Abatify Summary
Nature & Climate Perspective
**India's aggressive push for crop-based ethanol blending exacerbates land-use change (LULUCF) and water stress, challenging the net-positive ecological claims of the biofuel transition. **
- Monoculture cultivation of water-intensive feedstocks like sugarcane and maize for ethanol production threatens regional biodiversity and rapidly depletes critical groundwater reserves.
- Indirect Land-Use Change (ILUC) risks releasing stored soil carbon, which can structurally offset the primary emissions-reduction benefits sought by displacing fossil petrol.
- Intensive chemical fertilizer application for crop feedstocks accelerates agricultural runoff, compromising long-term soil microbiomes and downstream aquatic ecosystem stability.
Market & Policy Outlook
**The systemic shift toward ethanol mandates alters corporate Scope 3 accounting while raising critical additionality and leakage questions under the ICVCM Core Carbon Principles (CCPs). **
- The lower energy density of ethanol increases volumetric fuel consumption, complicating corporate Scope 3 transport emissions calculations and challenging SBTi-aligned decarbonization pathways.
- Biofuel crediting frameworks face high regulatory scrutiny under ICVCM CCPs, as the diversion of agricultural resources to fuel can lead to leakage and undermine additionality under Article 6.2 or 6.4 mechanisms.
- Government-enforced E20 mandates disrupt fuel retail pricing and automotive supply chains, forcing a rapid regulatory pivot toward flex-fuel engine compliance amidst consumer pushback over decreased mileage.
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