2021 Year in Review

Greenhouse Gas Reduction Benefits Of Ethanol Recognized In Policies Worldwide

image of four people standing
From left to right, Brian Healy, U.S. Grains Council (USGC) director of global ethanol market development, Jad Wakileh, USGC’s Middle East and Africa representative, Josh Roe, USGC ethanol A-Team member and Isabelle Ausdal, USGC manager of ethanol trade policy and economics, visited the European Union and the United Kingdom to meet with key ethanol industry representatives.

As many nations around the world have either recently implemented or are looking to implement new ethanol blending policies, the U.S. Grains Council (USGC) is promoting the benefits of ethanol for greenhouse gas (GHG) emissions reductions.

In New Zealand, ethanol’s GHG reduction benefits could help the nation lower emissions by 30 percent by 2030, reaching net zero by 2050. A proposed mandate in New Zealand would go beyond previous efforts by mandating that fuel suppliers reduce GHG emissions from transport fuels by a defined percentage each year. If implemented, trade could play a role in filling the gap between domestic production and increased demand. The global availability of ethanol provides New Zealand with guaranteed supply as their domestic producers scale up local production.

On the other side of the world, the United Kingdom (UK) implemented a 10 percent ethanol blend standard (E10) in September to build upon its goal of developing a net-zero transport sector by 2050. With countries like the U.S. having experienced significant reductions in GHG emissions from the use of E10, the UK’s decision demonstrates how successful implementation of ethanol blending policies can accelerate GHG reduction targets. Council staff visited the UK in November, discussing E10 deployment and providing input on potential areas to elevate ethanol in future climate discussions.

In Asia, as policymakers in South Korea and Japan consider new emission reduction initiatives, the Council has been working to demonstrate the benefits of blended ethanol.

Korea has set a goal of achieving carbon neutrality by 2050, and USGC’s director there, Haksoo Kim, has offered information on ethanol’s contributions in achieving those goals to government officials whenever possible. USGC Korea hosted a Climate Crisis and Biofuel Symposium this year, while also hosting a booth at the Seoul International Motor Show to showcase ethanol’s benefits.

A 2050 carbon neutrality goal is also in development in Japan, where direct blending of ethanol would present an immediate opportunity for the country to further reduce transport emissions. Japan does not blend ethanol directly but relies on pre-blended ethanol in the form of ethyl tertiary-butyl ether (ETBE). Direct blending at an E10 level would immediately expand carbon dioxide emission reductions fivefold.

Ethanol’s ability to reduce greenhouse gas emissions remains a focus in policy development around the world as nations look to combat climate change and focus on the health of their people and environment. Through education and programming, the Council is working to inform those policymakers of the benefits of ethanol when tackling GHG emissions.