Rolling out biofuel mandates across Asia

Barchart·11/10/2026 02:46:19

Over the past five years, several Asian countries have introduced or strengthened biofuel mandates as part of their strategies to enhance energy security, reduce greenhouse gas emissions, and support agricultural economies. To find out more about the Asia market visit the Bioenergy Expo Asia website for further details about the event to be held in Singapore next September.
These policies have varied in scope and ambition, reflecting each nation’s unique economic, environmental, and geopolitical contexts.
Vietnam is set to implement a nationwide ethanol blending mandate, requiring all petrol sold across the country to contain 10% ethanol (E10) starting January 1.
This policy marks a significant milestone in Vietnam’s transition toward cleaner energy and aligns with its commitment to achieving net-zero emissions by 2050.

Policy development

The move to E10 fuel is part of a broader strategy to reduce greenhouse gas emissions and promote sustainable energy sources.
The Ministry of Industry and Trade, through the Department of Innovation, Green Transformation, and Industrial Promotion, is leading the policy development.
Deputy Director Dao Duy Anh emphasised that the shift to E10 is essential for Vietnam’s path to cleaner energy, stating: “This is a necessary step toward a greener future and more efficient use of resources.”
Vietnam’s initial biofuel policy, established in 2012, aimed to promote ethanol blending, but it faced delays and limited implementation.
The new E10 mandate represents a more ambitious and comprehensive approach to biofuel adoption. The government has outlined a roadmap to phase out lower ethanol blends, such as E5, and to standardise E10 as the primary fuel type for all gasoline-powered vehicles.
To prepare for the nationwide rollout, Vietnam began pilot programmes in major cities.
Starting August 1, Petrolimex, one of the country’s largest fuel distributors, initiated E10 sales at 36 stations in Ho Chi Minh City.
Similarly, PVOil, another major distributor, began offering E10 RON95 fuel in Hanoi and Hai Phong.These pilot programmes aim to assess consumer acceptance and the technical readiness of the distribution network.

The full-scale implementation of E10 fuel is scheduled for January 1, 2026. From this date, all petrol types, including A92 and A95, must be blended with 10% ethanol to form E10.
This transition is expected to require between 1.2 and 1.5 million cubic metres of ethanol annually.
Currently, Vietnam’s domestic ethanol production capacity meets only about 40% of this demand, with the remainder expected to be sourced from international suppliers.

Infrastructure and supply chain considerations

The successful implementation of the E10 mandate depends on the development of adequate infrastructure and a reliable supply chain.
Vietnam has six ethanol plants with a combined capacity of approximately 500,000 cubic meters per year.
However, only two are currently operational, producing around 100,000 cubic meters annually.
To meet the increased demand, the government plans to reactivate idle plants and establish new production facilities. Additionally, import tariffs on ethanol have been reduced to facilitate the importation of necessary supplies.
The E10 mandate is expected to yield several environmental and economic benefits.
Blending ethanol with petrol can reduce carbon monoxide and hydrocarbon emissions from vehicles, contributing to improved air quality.
Economically, the policy aims to stimulate the domestic biofuel industry, create jobs and reduce dependence on imported fossil fuels.
However, challenges such as ensuring a stable ethanol supply, managing infrastructure upgrades, and addressing potential impacts on food prices due to increased demand for crops used in ethanol production will need to be carefully managed.
Looking ahead, Vietnam plans to further increase the ethanol content in fuel, with a proposed E15 mandate set for January 1, 2031. This gradual escalation reflects the government’s commitment to advancing its green energy agenda while ensuring that infrastructure and supply chains can support higher ethanol blends.
In conclusion, Vietnam’s implementation of the E10 ethanol blending mandate is a significant step toward achieving its environmental goals and promoting sustainable energy practices.
While challenges remain, the country’s proactive approach to policy development, infrastructure investment and international collaboration positions it well to meet its green energy objectives.

India: Ambitious ethanol blending targets

India has set one of the most aggressive biofuel mandates in Asia.
The National Policy on Biofuels, amended in 2022, advanced the target for 20% ethanol blending in gasoline (E20) from 2030 to 2025–26. B
y 2022, India had already achieved a 10% blending rate, ahead of schedule.
To support this, the government introduced the Roadmap for Ethanol Blending in India 2020–25, outlining annual plans to increase domestic ethanol production.
Additionally, as of April this year, all new vehicles have been required to comply with E20 standards.
However, this push has led to unintended consequences. The increased demand for ethanol, primarily produced from corn and rice, has diverted land from oilseed cultivation, threatening India’s goal of edible oil self-sufficiency.

Indonesia: Scaling up biodiesel mandates

Indonesia, the world’s largest producer of palm oil, has progressively increased its biodiesel blending mandates.
In 2023, the country implemented a B35 mandate, requiring a 35% palm oil blend in diesel fuel.
Plans are underway to introduce B50 by 2026, though technical testing and implementation timelines remain uncertain.
The government’s biofuel programme aims to reduce reliance on imported fossil fuels and support the domestic palm oil industry.
In 2025, Indonesia allocated 15.6 million kilolitres of palm-based biodiesel for its B40 programme, compared to 13.2 million kilolitres the previous year.

Malaysia: Incremental biodiesel expansion

Malaysia has adopted a more gradual approach to biofuel mandates. The country implemented a B10 biodiesel mandate and aims for B30 by 2025, with specific regions like Sarawak, Labuan and Langkawi already at B20.
In 2024, Malaysia’s biodiesel production was projected to reach 1.8 million metric tons if the B20 program was expanded nationwide.
The government’s biofuel policies are designed to support the palm oil industry and reduce greenhouse gas emissions. However, the success of these initiatives depends on balancing environmental goals with economic considerations.

China: Focus on ethanol from surplus grains

China’s biofuel policy has been primarily centred on ethanol production from surplus grains. The country’s biofuels programme, over two decades old, has focused almost entirely on ethanol, neglecting the use of renewables in the diesel pool.
This approach aims to utilise surplus corn and other grains, addressing both energy needs and agricultural over-production.
While China has not implemented nationwide blending mandates akin to those in India or Indonesia, the government’s policies have supported the development of biofuel infrastructure and production capacity.

Japan and South Korea: Limited biofuel mandates

Japan and South Korea have been more cautious in implementing biofuel mandates.
Japan’s biofuel policies have focused on research and development, with limited commercial-scale blending mandates. Similarly, South Korea has introduced pilot programmes but has not established nationwide biofuel blending requirements.
Both countries are exploring alternative energy sources and technologies, including hydrogen and electric vehicles, as part of their broader energy transition strategies.

Regional trends and challenges

Across Asia, biofuel mandates are increasingly seen as tools to achieve energy security and environmental goals.
Countries like India and Indonesia have leveraged their agricultural sectors to produce biofuels, while Malaysia has focused on expanding existing programmes.
China’s approach has been to utilise surplus agricultural products and Japan and South Korea have adopted more cautious, research-focused strategies.
However, these initiatives face several challenges, including feedstock availability, technological readiness and potential conflicts with food production.
For instance, Indonesia’s push for higher biodiesel blends has raised concerns about the impact on palm oil markets.
Similarly, India’s ethanol drive has affected oilseed cultivation, threatening edible oil self-sufficiency.
In conclusion, while Asia’s biofuel mandates have made significant strides in recent years, ongoing adjustments and careful policy design will be essential to balance energy, environmental and agricultural objectives.

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