The US and India are collaborating to increase investment in India’s energy transition industry. The announcement comes amid international pressure for India to decarbonise its economy more rapidly.
US Treasury Secretary Janet Yellen met with Indian Finance Minister Nirmala Sitharaman for a bilateral meeting on the sidelines of the G20 financial meetings taking place in India this week.
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“We look forward to working with India on an investment platform to deliver a lower cost of capital and increased private investment to speed India’s energy transition,” said Yellen in the meeting.
The pair discussed their collaboration across a range of issues including “commercial and technological collaboration, strengthening supply chains and catalysing the clean energy transition”, according to a statement from Yellen.
“I also look forward to furthering our bilateral interests through development cooperation and new investment opportunities through alternative investment platforms for renewable energy,” said Sitharaman in a video of Monday’s meeting posted to her Twitter account.
The G20 finance ministers and ccentral bank governors meetings are taking place in Gandhinagar, the capital of Gujarat, a highly industrialised Indian state. The talks see representatives from 19 states and the EU meet to discuss economic development ahead of the G20 Summit taking place in New Delhi in September.
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By GlobalDataIndia is a major polluter in terms of total emissions with the third-largest carbon dioxide emissions globally, following the US and China. The county is under pressure to decarbonise. However, due to India’s large population its per capita emissions are much lower.
India generates large amounts of its energy from coal. For the fiscal year ending in March 2023, coal-generated power represented 73.1% of its overall output.
India is seeking to transition to a lower-carbon economy through the Just Energy Transition Partnerships framework. The system, which was established during COP26 in Glasgow in 2022, seeks to economically support coal-dependent economies in their transition towards cleaner alternatives.
Richer economies that industrialised earlier are under pressure to support other nations to transition in a just way.
Ahead of COP28 in Dubai in November, countries are not on track to meet climate change targets. A number of governments are being called upon to adopt stricter emissions limits.
Prime Minister Narendra Modi made a state visit to the US last month, which Sitharaman said on Monday “enhanced the strength and dynamism of the partnership” between the two countries. Modi and Biden signed a series of technology and defence deals.
