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Developing Incentives for Diversifying Biofuel (BBN) Industrial Feedstocks
Diversifying feedstocks for biofuels requires incentive schemes that align the value added of alternative feedstocks so they can compete with palm oil. Key considerations in providing incentives should include feedstock diversification, environmental sustainability, and prioritizing small-scale biofuel industries.
Several existing regulations, such as those related to credit access, subsidies, and performance-based rewards, can be leveraged as incentive mechanisms for the biofuel industry. However, these regulations still have significant gaps in effectively promoting incentives specifically aimed at feedstock diversification.
Cases of successful small-scale biofuel home industries that nevertheless feel inadequately supported highlight the importance of capital access and technical assistance for startups. Building a healthy biofuel industry therefore requires active engagement from local stakeholders, including local governments, businesses, and civil society organizations.
