review of biofuel policies in the major biofuel producing countries of ASEAN: Production, targets, policy drivers and impacts

• Published in: Renewable & sustainable energy reviews 2013-10, Vol.26, p.822-836
• Main Authors: Kumar, S, Shrestha, Pujan, Abdul Salam, P
• Format: Article
• Language: English
• Subjects: Alternative fuels. Production and utilization; Applied sciences; biodiesel; carbon; climate change; Economic data; economic incentives; Energy; Energy economics; Energy policy; ethanol production; Exact sciences and technology; finance; Fuels; General, economic and professional studies; greenhouse gas emissions; imports; income; markets; mixing; Natural energy; oils; socioeconomic development
• ISSN: 1364-0321; 1879-0690
• DOI: 10.1016/j.rser.2013.06.007

Since the turn of this century, development of biofuels have progressed rapidly in Indonesia, Malaysia, Philippines and Thailand—the major biofuels producing countries in the ASEAN (Association of South East Asian Nations). The article analyses the biofuel polices, underlying drivers, and way forward for sustained biofuel development in these countries. Favorable regulatory and economic mechanisms have played an important role in the production, utilization and market penetration of biofuels in these countries. A large variety of biofuel support policies are in place ranging from policy targets, blending mandates, tax incentives and other financial schemes to stimulate the development and adoption of biofuels. Indonesia is leading the region in biodiesel production and Thailand is leading in ethanol production. Though each of these countries have had occasional setbacks in their production, in totality, there has been positive growth in biofuel production and an upward trend in future is likely with increased demand, consumption, enforcement of mandates and realization of policy targets. The biofuel development of these countries is motivated by several factors, mainly their concerns for energy security (e.g. to reduce the dependence of oil imports) and socio-economic development (e.g. to increase income generating opportunities). Climate change is not the primary motive of these countries to pursue biofuel development. However, sustainable production of biofuels and reliance on second generation biofuels can provide opportunities for these countries to translate their growth potential into economic revenues under carbon finance and thus address greenhouse gas emissions and climate change concerns.