Briquetting is beneficial not only for businesses but also for the environment. When biomass briquettes are burned, they release only the amount of carbon dioxide that plants absorb during their growth through photosynthesis, making them a carbon-neutral fuel option. In India, the development of biomass briquetting is supported by the Indian Renewable Energy Development Agency (IREDA), which provides financial assistance, technical guidance, and training to entrepreneurs.

The briquetting industry in India is steadily expanding as the government focuses on conserving forests, especially since wood remains a primary energy source in many rural areas. With continuous support and awareness initiatives from IREDA, more investors are gaining confidence in setting up biomass briquetting plants.