India and USA forge a joint path towards climate change and clean energy transformation – EQ Mag
The joint statement released during the visit contained seven comprehensive paragraphs exclusively addressing these matters, encompassing various domains such as clean energy technology, transportation, investment platforms, critical minerals, nuclear energy, and sustainable consumption.
Earlier last month, Prime Minister Modi concluded his momentous visit to the United States, where the defence and space agreements garnered significant attention in the media. However, the substantial progress made in the vital domains of climate change and clean energy received comparatively less prominence in the headlines. The joint statement released during the visit contained seven comprehensive paragraphs exclusively addressing these matters, encompassing various domains such as clean energy technology, transportation, investment platforms, critical minerals, nuclear energy, and sustainable consumption. This article examines the crucial elements outlined in the joint statement and explores their implications for the worldwide clean energy landscape.
Considering the fact that both countries are among the top five emitters in the world, the US and India underlined their commitment to achieving global climate goals. To foster innovation and collaboration in the renewable energy sector, the leaders launched the US-India New and emerging renewable energy technologies action platform to facilitate cooperation in areas such as green hydrogen, offshore and onshore wind, and other emerging technologies. The two countries agreed to establish a task force under the US-India Climate and Clean Energy Agenda 2030 Partnership and Strategic Clean Energy Partnership (SCEP) to deploy energy storage technologies. Acknowledging the important role of nuclear energy in global decarbonization efforts, both leaders affirmed its significance in meeting climate, energy transition, and energy security needs. The joint statement carries one full paragraph on decarbonizing the transportation sector, underscoring its importance. Both countries indicated their commitment to accelerate the deployment of zero-emission vehicles, promote public and private financing for electric transportation, and develop biofuels, including sustainable aviation fuels. Addressing sustainable consumption and production was identified as a crucial component of achieving the development, environmental, and climate ambitions of the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs).
Pursuing New Frontiers of Cooperation
Clean energy technology, renewable energy deployment, energy efficiency, sustainable transportation, and climate resilience and adaptation have been prominent areas of collaboration between the two nations in the past. However, the recent meeting witnessed the emergence of several novel domains of cooperation, signifying the expansion and diversification of their collaborative efforts. Acknowledging the crucial role of carbon capture, utilisation, and storage (CCUS) in mitigating emissions, the two countries agreed to joint efforts in this area. Collaboration on next-generation small modular reactor technologies for both the domestic market and export was extremely noteworthy. Critical minerals are critical for several supply chains, including EV. The two countries agreed to hasten bilateral collaboration to secure resilient critical minerals supply chains through enhanced technical assistance and greater commercial cooperation.
Bolstering Global Collaborations
Through various global alliances such as the Paris Agreement, UNFCCC, IPCC, and others, the countries have established a history of collaboration. However, the recent joint statement emphasized the identification of novel alliances and avenues of cooperation between the two nations. The International Energy Agency (IEA) serves as a leading international energy organization, providing research, analysis, and policy recommendations on various aspects of energy production, consumption, and security. India is currently an associate member of this agency. The US expressed their commitment to working toward India’s membership in the organization. India’s inclusion as a partner in the Mineral Security Partnership (MSP) was welcomed by the US, further enhancing global critical energy minerals supply chains and adhering to environmental, social, and governance standards. The leaders lauded the creation and development of the Global Biofuels Alliance, which will be launched in July 2023, with the United States as a founding member. The United States restated its endorsement of India’s inclusion in the Nuclear Suppliers Group. The US expressed appreciation for India’s decision to jointly spearhead the multilateral Hydrogen Breakthrough Agenda.
Accelerating Climate Funding
Recognising the need for substantial investments in renewable energy projects, battery storage, and emerging green technologies, the United States and India have committed to creating innovative investment platforms. These platforms will play a pivotal role in attracting international private finance and lowering the cost of capital for greenfield projects. A first-of-its-kind, multibillion-dollar investment platform is being developed to provide catalytic capital and de-risking support for such projects, emphasising the importance of financial collaboration in the clean energy transition. As a case in point, the two countries have planned to deploy 10,000 made-in-India electric buses in India, facilitated by a payment security mechanism.
Nurturing Subnational Engagement in Climate Action
Both countries agreed to create opportunities for cross-country learning, capacity building, and implementation on the ground. Consultations between the U.S. Department of Energy (DOE) and India’s Department of Atomic Energy (DAE) were intensified to facilitate opportunities for developing nuclear projects. There are ongoing negotiations between the Nuclear Power Corporation of India Limited and Westinghouse Electric Company for the construction of six nuclear reactors in India. A memorandum of understanding was signed between the US Agency for International Development and Indian Railways to support efforts to make the railway sector a “net-zero” carbon emitter by 2030. Both nations expressed a commitment to reducing the cost of green or clean hydrogen through their respective national goals, further supported by India’s National Green Hydrogen Mission and the US Hydrogen Energy Earthshot. Both countries appreciated the significance of the US Inflation Reduction Act and India’s production-linked incentive scheme for cutting-edge clean and renewable technologies. President Biden expressed his appreciation for India’s Lifestyle for Environment initiative (LiFE) as a commendable national model in addressing climate change, biodiversity loss, desertification, and land degradation.
Appreciating India’s Investments in the US Climate Sector
Though India remains a new importer from the US in terms of climate change and clean energy technologies, an equally noteworthy highlight of this summit was the announcement of substantial investments by Indian companies in the US climate sector. The US welcomed the announcement of India’s Epsilon Carbon Limited’s plans to invest $650 million in a US greenfield electric vehicle battery component factory, India’s VSK Energy LLC’s investment up to $1.5 billion to develop a new, vertically integrated solar panel manufacturing operation in the United States, and India’s JSW Steel USA’s plans to invest $120 million at its Mingo Junction, Ohio, steel plant.
The recent visit of PM Modi to the US signifies a significant milestone in the joint endeavours of both nations towards climate change and clean energy transition. By prioritising clean energy deployment, sustainable transportation, green investments, international cooperation, critical minerals, and nuclear energy, the two nations set a positive example for others to follow. This summit highlights the need for nations to collaborate in overcoming global climate challenges and realising a cleaner, greener world for generations to come.
Source: PTI
