Climate Action and Finance Mobilisation Dialogue: India-US

• 14 Sep 2021

Why in News

Recently, US Special Presidential Envoy for Climate, along with India’s Union Minister for Environment, Forests and Climate Change launched the Climate Action and Finance Mobilisation Dialogue (CAFMD) between the two countries.

• India has so far abstained from committing to a net zero goal but is on a climate pathway that is compatible with keeping global temperatures to below 2 degree celsius by the end of the century.

Key Points

• About:
  
  • It is one of the two tracks of the India-US Climate and Clean Energy Agenda 2030 partnership launched at the Leaders' Summit on Climate in April 2021.
    
    • Earlier, the revamped US-India Strategic Clean Energy Partnership SCEP (first track) was launched.
  • It will provide both countries an opportunity to renew collaborations on climate change while addressing financing aspects and deliver climate finances primarily as grants and concessional finance as envisaged under the Paris Agreement.
  • It will also help to demonstrate how the world can align swift climate action with inclusive and resilient economic development, taking into account national circumstances and sustainable development priorities.
• Pillars to the CAFM:
  
  • Climate Action Pillar:
    
    • It would have joint proposals looking at ways in which emissions could be reduced in the next decade.
  • Finance Pillar:
    
    • Through this the US will collaborate in attracting capital and enhancing the enabling environment to deploy 450 GW of renewable energy capacity in India and demonstrate and scale innovative clean energy technologies and promote bilateral clean energy investment and trade.
  • Adaptation and Resilience:
    
    • The two countries will collaborate in building capacities to “measure and manage climate risks”.
• Opportunities for India:
  
  • There’s never been a better time to invest in the energy transition. Renewable energy is cheaper than ever.
  • In fact, it is cheaper to build a solar farm in India than anywhere else on the planet.
  • Investors are now moving to clean energy all around the world and the energy transition is already rebounding after the worst of the pandemic and is now on track to smash the pre-pandemic record of 8.4 billion USD invested in one year.
  • The International Energy Agency forecasts that if India seizes the clean energy opportunity, it could become the world’s largest market for batteries and solar panels.
    
    • Currently India's installed power capacity is projected to be 476 GW by 2021-22 and is expected to rise to at least 817 GW by 2030.

Source: TH