Asia St: New US-India Clean Energy Finance Initiative in the Spotlight

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New US-India Clean Energy Finance Initiative in the Spotlight

September 15, 2021

The BGA India Team, led by Managing Director Ratan Shrivastava, wrote an update to clients on U.S. Special Presidential Envoy for Climate John Kerry’s recent visit to India. The update addressed the context behind the trip, the subjects of discussions between the two sides and potential implications for companies.

Context

John Kerry in meetings in India (Photo Credit: John Kerry Twitter Account).

U.S. Special Presidential Envoy for Climate John Kerry concluded a significant three-day visit to India from September 12 to 14. Kerry’s visit to New Delhi, the second since his appointment, forms part of the U.S. initiative to bolster climate efforts ahead of the 26th U.N. Climate Change Conference (COP26) scheduled this November in Glasgow and comes just before Indian Prime Minister Narendra Modi’s scheduled visit to the United States next week.

A key focus of Kerry’s visit was the formal launch of the Climate Action and Finance Mobilization Dialogue (CAFMD). The initiative, which aims to attract investment and facilitate financing of renewable energy and green technologies in India, is one of the two tracks of the U.S.-India Climate Clean Energy Agenda 2030 Partnership, which Modi and U.S. President Joe Biden inaugurated at the Leader’s Summit on Climate in April.

Significance

CAFMD’s launch further strengthens U.S.-India collaboration on economically viable clean energy transitions. Both sides have established climate and clean energy as a core pillar of the U.S.-India relationship through moves such as the Agenda 2030 Partnership.

Apart from that, Kerry’s visit also saw both sides discuss a wide range of issues. Talks covered discussions on COP26, ambition on climate, climate financing, green hydrogen, technology and global climate initiatives including the International Solar Alliance. While net-zero emissions were not a subject of discussion, Kerry welcomed India’s ambitious target of achieving 450 gigawatts (GW) of renewable energy by 2030 as part of its clean energy goals and pledged U.S. assistance.

Implications

Kerry’s visit underscored that climate remains a key area where the U.S. private sector can tap into within the U.S.-India relationship. For instance, during Kerry’s meeting with Minister for Power and Renewable Energy R.K. Singh, Singh invited U.S. companies to participate in the competitive bids for green hydrogen and electrolyzers planned in the upcoming months.

Companies should watch for follow up opportunities after the launch of the finance mobilization dialogue. CAFMD could set the tone for greater collaboration between the countries’ private sectors on reducing costs and finding economically viable solutions.

BGA will continue to keep you updated on developments in India as they occur. If you have any questions or comments, please contact BGA India Managing Director Ratan Shrivastava at ratan@bowergroupasia.com.