India is one of the fastest growing economies and the third largest consumer of primary energy in the world after the US and China. India’s fuel energy security will remain vulnerable until alternative fuels are developed based on renewable feedstocks. The government of India targets to reduce the country’s carbon footprint by 30-35 per cent by 2030. These targets will be achieved through a five-pronged strategy which includes: Increasing domestic production, adopting biofuels and renewables, implementing energy efficiency norms, improving refinery processes and achieving demand substitution. This strategy envisages a strategic role for biofuels in the Indian energy basket. The government has proposed a target of 20 per cent blending of ethanol in petrol and 5 per cent blending of biodiesel in diesel by 2025-2030 and introduced multiple initiatives to increase indigenous production of biofuels. India is the second-most polluted country in the world, with almost all its people living in areas where the annual average particulate matter level exceeds World Health Organization (WHO) guidelines. Pollution caused by fossil fuel vehicular exhaust is a big part of the problem, contributing a significant percentage of greenhouse emissions, and a much larger percentage of carbon monoxide pollution The use of biofuels such as ethanol, CBG, agri residues, second generation bio-fuels provides an extremely viable and eco-friendly solution. Ethanol-blended fuel makes internal combustion highly efficient; it reduces the formation of greenhouse gases up to 90 per cent as compared to conventional fuels, and reduces particulate pollutants to zero. Moreover, it does not require any design changes to the existing internal combustion engines. Ethanol is a low-hanging fruit, with both environmental and economic benefits. India has been producing surplus sugarcane for many years now. This surplus yield can be diverted to produce ethanol. Doing so will generate additional income for farmers and more employment opportunities in rural areas. Ethanol can be made from not only sugarcane but also waste feedstock such as corn, maize, potatoes, and rice. This waste feedstock is usually thrown away; using it for ethanol production can ensure that farmers get a price for it. Domestic biofuel production and consumption can also help in offsetting oil imports and enhancing demand for important agricultural commodities. The use of biofuels can reduce emissions from sectors such as heavy-duty vehicles, aviation, and shipping, which are difficult to bring into the ambit of low-carbon electricity. At a national level, a tax differentiation should be provided between fossil fuels and renewable fuels to encourage the use of ethanol. Such measures, together with mandatory ethanol blending, could help India become one of the largest producers and consumers of ethanol in the world. The National Policy on Biofuels, introduced by the government in 2018, is significant in this context. It has set a target of 10 per cent ethanol blending with vehicle fuel by the year 2022, and 20 per cent by 2025. It will also play an important role in Prime Minister Narendra Modi’s goal of making India a $5 trillion economy. Ethanol can be a game-changer for not just transportation and environment, but also for agriculture and trade. Climate change impact crucial for bio-fuel Observed climate change is already affecting food security through increasing temperatures, changing precipitation patterns, and greater frequency of some extreme events. Studies that separate out climate change from other factors affecting crop yields have shown that yields of some crops (e.g., maize and wheat) in many lower-latitude regions have been affected negatively by observed climate changes, while in many higher-latitude regions, yields of some crops (e.g., maize, wheat, and sugar beets) have been affected positively over recent decades.