{"id":20019059,"date":"2016-06-06T06:30:14","date_gmt":"2016-06-06T06:30:14","guid":{"rendered":"https:\/\/www.thethirdpole.net\/?p=19059"},"modified":"2021-01-03T20:30:56","modified_gmt":"2021-01-03T15:00:56","slug":"us-india-may-deepen-energy-ties-to-combat-climate-change","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/energy\/us-india-may-deepen-energy-ties-to-combat-climate-change\/","title":{"rendered":"US, India may deepen energy ties to combat climate change"},"content":{"rendered":"

When US President Barack Obama hosts Prime Minister Narendra Modi to a working lunch on June 7 at the White House, climate change \u2013 and the ways the two nations can step up efforts to mitigate its worst effects \u2013 are likely to figure prominently in their conversation.<\/p>\n

Although American business has a keen interest in India\u2019s big plans to grow its nuclear and solar energy sectors that have the most immediate impact on global warming, there are a few contentious issues that the two leaders would look to smoothen for quicker action.<\/p>\n

A major announcement is expected on nuclear energy, which India sees as a cleaner option to burning fossil fuels. New York-listed Westinghouse has agreed to build six nuclear reactors in the southern state of Andhra Pradesh for the Nuclear Power Corporation of India, a breakthrough deal<\/a> that is expected to be finalised during Modi\u2019s June 6-8 visit.<\/p>\n

It will be the first commercial agreement after India and the US signed the historic civil nuclear agreement in 2005 that ended India\u2019s long isolation from the international nuclear community. In January 2015, when the US President had visited India, Obama and Modi had resolved differences<\/a> on fixing liability if there is an accident at an atomic power plant. This was followed by a civil nuclear pact with Japan<\/a> in December 2015 that allowed Westinghouse\u2019s parent company, Toshiba, to negotiate a business arrangement.<\/p>\n

Solar squabbles <\/strong><\/p>\n

On solar energy, things are not as bright. The increasing bilateral collaboration has stumbled in recent times due to a trade dispute over the import of solar panels and modules used in India\u2019s National Solar Mission (NSM), a government scheme that aims to deploy 20,000 MW of solar power that would be connected to the electricity grid by 2022.<\/p>\n

The World Trade Organisation (WTO) in February ruled in favour of the US<\/a>, saying that the domestic content requirements of the NSM that stipulated that certain cells and modules have to be made in India were not consistent with its rules. In April, India decided to appeal against the ruling.<\/p>\n

The WTO\u2019s stance has been criticised by environmentalists. \u201cToday, we have more evidence of how free trade rules threaten the clean energy economy and undermine action to tackle the climate crisis. India\u2019s national solar programme has driven dramatic growth of India\u2019s solar capacity that will help reduce its reliance on dirty coal and spur the development of new clean energy jobs,\u201d Ilana Solomon, Director of Responsible Trade Programme at the Sierra Club, an American environmental organisation, had said in an August 2015 statement<\/a> in response to a preliminary ruling of the WTO. \u201cThe US should be applauding India\u2019s efforts to scale up solar energy \u2013 not turning to the WTO to strike the programme down.\u201d<\/p>\n

\u201cThe United States strongly supports the rapid deployment of solar energy around the world \u2013 including in India.\u00a0 But discriminatory policies in the clean energy space in fact undermine our efforts to promote clean energy by requiring the use of more expensive and less efficient equipment, raising the cost of generating clean energy and making it more difficult for clean energy sources to be competitive.\u201d US Trade Representative Michael Froman said in February 2016<\/a>.<\/p>\n

The US government went to the WTO despite the January 2015 agreement between Modi and Obama in New Delhi to ramp up clean energy development in India.<\/p>\n

See: India holds on to climate card<\/a><\/p>\n

See: Obama\u2019s climate diplomacy: the dangers of bilateralism<\/a><\/p>\n

Building on strong initiatives<\/strong><\/p>\n

It now remains to be seen whether Modi and Obama are able to iron out their differences and build upon the several other initiatives that the two nations have launched in recent years. At their first bilateral summit in September 2014, the leaders had agreed to a strategic partnership on energy security, clean energy and climate change<\/a>. They had agreed to expand the successful US-India Partnership to Advance Clean Energy (PACE) through a series of initiatives, including a new Energy Smart Cities Partnership to promote efficient urban energy infrastructure; a new programme to scale-up renewable energy integration into India\u2019s power grid; an expansion of the Promoting Energy Access through Clean Energy (PEACE) programme to unlock additional private sector investment; and the formation of a new Clean Energy Finance Forum to promote investment and trade in clean energy projects.<\/p>\n

At that time, the US Export-Import Bank and the Indian Renewable Energy Development Agency had signed an agreement to make available USD 1 billion in financing to bolster India\u2019s efforts to transition to a low-carbon and climate-resilient energy economy, while boosting US renewable energy exports to India.<\/p>\n

In light of the Paris climate agreement in December 2015, it is expected that Modi and Obama will adopt a pragmatic approach to jointly tackle global warming. It is likely that the US will support India in achieving its renewable energy goals, despite trade concerns. In Paris, India pledged to increase the share of non-fossil based electricity generation capacity to 40% by 2030.<\/p>\n

\u201cThe combination of need and ambition by the current Modi government has created the biggest single-country renewable energy market in the world, and hence the biggest investment opportunity,\u201d Andrew Light, Distinguished Senior Fellow at Washington DC-based World Resources Institute, wrote in a blog post<\/a> on June 1. \u201cThe stakes for failure are immense. There are far less sustainable pathways for overcoming India\u2019s energy access problem than the current government\u2019s ambitious plans on renewable energy. Modi and Obama can chart a cooperative course next week toward a more sustainable future for us all.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

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