US Exit from ISA | 31 Jan 2026
Why in News?
In January 2026, the US announced its withdrawal from the International Solar Alliance (ISA), 5 years after joining in 2021. This move threatens to weaken global climate efforts and impede the advancement of solar energy worldwide.
What is the International Solar Alliance (ISA)?
- About: It is an action-oriented collaborative platform and the first international intergovernmental organisation headquartered in India (Gurugram, Haryana).
- It was launched jointly by India and France on the sidelines of COP21 (UNFCCC) in Paris in 2015, coinciding with the landmark Paris Agreement.
- The Assembly is the apex decision-making body, where each member country is represented.
- Membership: Initially focused on countries lying between the Tropic of Cancer and the Tropic of Capricorn. Following a 2020 amendment to its Framework Agreement, membership was opened to all UN member states. It currently has over 100 signatory countries, with over 90 having ratified to become full members.
- Objective: It aims to make solar power affordable and accessible in developing countries by facilitating finance, reducing investor risk, and accelerating adoption. It does not build solar plants itself.
- Core Strategy: ISA is guided by its ‘Towards 1000’ strategy, which targets by 2030:
- Mobilizing USD 1,000 billion in investments.
- Delivering energy access to 1,000 million people using clean energy.
- Installing 1,000 GW of solar energy capacity.
- Mitigating 1,000 million tonnes of CO₂ annually.
- Key Initiatives:
- One Sun One World One Grid (OSOWOG): A programme to build regional solar interconnections across continents (Asia, Middle East, Europe, Africa).
- SUNRISE Network: Focuses on promoting a circular economy in the solar sector through solar waste management, recycling, and innovation.
- SIDS Solar Procurement Platform: A collaboration with Small Island Developing States (SIDS) and the World Bank for joint solar procurement and energy resilience.
- Global Capability Centre & ISA Academy: Established as a hub for excellence (Silicon Valley for Solar) and an AI-based e-learning platform for global solar skills training.
India’s Solar Industry
- Strong Manufacturing Base: India has developed significant domestic capacity, with solar module manufacturing close to 144 GW and solar cell manufacturing around 25 GW (and growing fast), reducing import dependency for key components.
- Reliance on Chinese Imports: For high-efficiency modules, the supply chain is dominated by China (70% global cell capacity), with India importing USD 1.7 billion worth of PV modules from China in FY25.
- Resilient Investment Pipeline: Investments are secure as projects are fueled by strong domestic demand, backed by long-term contracts with utilities, and funded primarily by Indian banks and global institutions, not US capital.
What could be the Potential Impact of the US Withdrawal from ISA and Steps Needed to Deal with it?
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Potential Impact of US Withdrawal from ISA |
Way Forward |
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Sends a signal of declining US commitment to multilateral climate action, particularly in the Global South. Weakens the perception of unified global cooperation on solar energy. |
Proactively position the ISA as the indispensable, neutral platform for the Global South's solar transition, filling the void left by the US. |
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May dampen investor confidence and increase perceived risk for solar projects in developing countries (Africa, island nations). |
Accelerate partnerships with the EU, Japan, development banks (ADB, AIIB), and private funds for climate financing. Create de-risking instruments to attract investment. |
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Loss of US technical expertise and innovation potential in areas like grid integration, storage, and project management. |
Deepen collaboration with other tech leaders within the ISA (e.g., France, Germany, Japan) and leverage Indian R&D institutions (like the National Institute of Solar Energy). |
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Opens doors for Indian companies in ISA member countries seeking reliable, non-Chinese partners. |
Use ISA platforms to showcase Indian technology and project execution. Fast-track negotiations with ISA countries to secure better market access for Indian solar exports. |
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Accelerates the bifurcation of global climate governance into competing blocs, complicating coordinated action. |
Use the ISA to maintain dialogue with all parties, including the US, on specific projects, ensuring it remains an inclusive, action-oriented body rather than an ideological one. |
Conclusion
The US withdrawal from the ISA is a diplomatic setback but also a strategic opportunity for India to reinforce its climate leadership, mobilize alternative finance, and solidify the ISA as the premier platform for the Global South's just solar transition.
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Drishti Mains Question: The US withdrawal from the International Solar Alliance (ISA) presents both a challenge and an opportunity for India's climate diplomacy. Critically examine. |
Frequently Asked Questions (FAQs)
1. What is the International Solar Alliance (ISA)?
The ISA is an India–France-led intergovernmental organisation (2015) that promotes affordable solar energy in developing countries through finance facilitation, risk reduction, and capacity building.
2. What is the core objective of the ISA's 'Towards 1000' strategy?
It aims to mobilize USD 1,000 billion in investments and install 1,000 GW of solar capacity by 2030 to deliver clean energy access and mitigate emissions.
3. What is a key strength of India's solar industry?
India possesses a resilient, domestically-driven solar industry with a manufacturing capacity of 144 GW for modules, insulating it from such external decisions.
UPSC Civil Services Examination, Previous Year Questions
Q. Consider the following statements: (2016)
- The International Solar Alliance was launched at the United Nations Climate Change Conference in 2015.
- The Alliance includes all the member countries of the United Nations.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (a)