Page 42 - Policy Economic Report - September 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

In the oil & gas sector, the sides recognised the trust reposed by Indian companies in the Oil & gas sector
which has resulted in Brazil being one of the largest destinations for investments by Indian Oil & Gas
companies in the world. The sides also reaffirmed their commitment to identify new possible mechanism
for increasing the presence of Indian companies in the country, including through new investment
opportunities in producing assets. The sides, while recognising the complementarities in the trade sector,
committed to identifying ways of enhancing the trade between the two countries, including through
innovative mechanisms.

As founding members of the Global Biofuels Alliance, both sides reiterated the crucial role the Alliance
will play in positioning biofuels as a key component of the global energy transition, contributing not only
to environmental sustainability but also to socioeconomic growth.

The Indian side congratulated the Brazilian side on the hosting of the G20 and welcomed the emphasis
being placed on sustainable fuels and social dimensions of energy transition. The Indian side expressed
confidence that Brazil’s leadership would further the G20’s agenda of inclusive and sustainable
development, building on the momentum generated by India's presidency in 2023.

The sides looked forward to co-hosting an India-Brazil Clean Cooking Ministerial Meeting on the sidelines
of India Energy Week 2025 in February 2025, which would provide an opportunity to explore collaborative
pathways for enhancing clean cooking access globally.

Both sides discussed collaboration in the domain of deep and ultradeep explorations in the Indian offshore
Acreages.

The two sides also initiated a discussion on cooperation in the area of critical minerals and their value
chains.

Joint Statement on Biofuels and Sustainable Aviation Fuels (SAF)

The sides noted that India and Brazil, as two leading biofuel producers, are well-positioned to collaborate
on production and use of Sustainable Aviation Fuels (SAF), by leveraging their existing ethanol and
biodiesel production infrastructure, growing aviation market and vast feedstock potential, including their
agricultural resources.

In the context of SAF, the sides noted that currently SAF remains the major mature and viable pathway to
decarbonise the aviation sector. At the same time, SAF only accounts for 0.3% of the current fuel use for
aviation.

The sides reaffirmed that the goal of net zero in the aviation sector would require joint and collaborative
action between the two countries to resolve some of the major hurdles to SAF production, namely,
feedstock-related challenges, high cost of SAF compared to other technologies, infrastructure for large -
scale production and efficient waste management systems, low maturity of production pathways, etc.

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