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India-US $1 Billion Clean Energy Initiative
Context:
The U.S. and India aim to enhance bilateral technical, financial, and policy support to expand complementary manufacturing capacity, building on their existing clean energy cooperation, as stated by the White House.
Overview:
- India and the US launched a $1 billion multilateral clean energy financing initiative.
- Managed through the International Bank for Reconstruction and Development (IBRD).
- Focus: Strengthening domestic clean energy supply chains in solar, wind, battery storage, energy grids, and efficient appliances.
Strategic Goals:
- Promote high-quality job creation and accelerate clean energy deployment.
- Support global climate goals through enhanced cooperation.
- Expand bilateral technical, financial, and policy support for clean energy.
Collaboration with Industry:
- Joint efforts with industry to identify investment opportunities.
- Focus areas: Solar wafers, wind turbine components, energy storage, and high-efficiency appliances.
- Pilot projects in Africa, including solar and EV charging near health facilities.
Financial Mobilisation:
- Initial $1 billion financing through IBRD, with potential for further investments.
- The initiative includes novel financial platforms like the Payment Security Mechanism for electric buses in India.
Policy Framework and Long-term Vision:
- Policy coordination between India’s Production Linked Incentive (PLI) schemes and the US Inflation Reduction Act.
- Goal: Mobilise additional financing and use innovative tools for clean energy sectors.
Global Cooperation and Expansion:
- Focus on trilateral cooperation, especially with African nations.
- Expansion of clean energy technologies globally, contributing to climate goals.
Building on Existing Partnerships:
- Builds on the 2023 clean energy initiatives during Modi’s US visit.
- Continued collaboration under the Strategic Clean Energy Partnership led by US and Indian government bodies.
Pilot Projects and Scaling:
- Initial package of pilot projects focused on clean energy value chains.
- Collaborative approach involving government, civil society, and private sector for scaling up successful models.
- This initiative represents a significant step in enhancing global clean energy supply chains and deepening India-US bilateral cooperation.