India-US sign pact to unlock one billion dollars for clean energy technology manufacturing – EQ
In Short : India and the US have signed an agreement to unlock $1 billion in funding to boost clean energy technology manufacturing. The pact aims to enhance collaboration between the two countries in areas such as renewable energy, energy storage, and green hydrogen production. This initiative will help India accelerate its energy transition, reduce carbon emissions, and support sustainable economic growth. The partnership underscores the commitment of both nations to address climate change through innovation and investment in clean technologies.
In Detail : India and the US have signed an agreement to unlock one billion dollars for clean energy technology manufacturing in India and having a resilient supply chain of clean energy components, the Ministry of External Affairs said on September 22.
“President Biden and Prime Minister Modi welcomed the U.S.-India Roadmap to Build Safe and Secure Global Clean Energy Supply Chains, which launched a new initiative to accelerate the expansion of safe and secure clean energy supply chains through U.S. and Indian manufacturing of clean energy technologies and components,” the Ministry of External Affairs said.
MEA, in a statement, explained that to launch this partnership, the US and India are working to unlock USD$1 billion in new multilateral finance through the International Bank for Reconstruction and Development (IBRD) for projects that include catalyzing India’s domestic clean energy supply chain buildout.
In its initial phase, the two nations would work together for multilateral financing to support projects across the clean energy value chain for renewable energy, energy storage, power grid and transmission technologies, high efficiency cooling systems, zero emission vehicles, and other emerging clean technologies.
The two leaders highlighted the US International Development Finance Corporation (DFC)’ has to date extended a $250 million loan to Tata Power Solar to construct a solar cell manufacturing facility and a $500 million loan to First Solar to construct and operate a solar module manufacturing facility in India.
PM Modi and US president Biden also announced a new Memorandum of Cooperation between the US Agency for International Development and the International Solar Alliance aimed at promoting more responsive and sustainable power systems that leverage diverse renewable energy sources.
Meanwhile, the Leaders welcomed collaboration on a new National Center for Hydrogen Safety in India and affirmed their intent to utilise the new Renewable Energy Technology Action Platform (RETAP) to enhance collaboration on clean energy manufacturing and global supply chains, including through public-private task forces on hydrogen and energy storage.
Moreover, they lauded the two nations’ collaboration under the Strategic Clean Energy Partnership (SCEP), most recently convened on September 16, 2024 in Washington DC to strengthen energy security, create opportunities for clean energy innovation, address climate change and create employment generation opportunities, including through capacity building, and collaboration between industry and R&D, the White House noted.
