US & Germany recommend India-G7 collaboration to fund decarbonization

On behalf of the G7, the United States and Germany have reportedly proposed setting up an India-G7 collaboration to help fund and support India’s transition to a carbon-neutral economy from a fossil-based economy.

Sources say that the two countries are excited to announce this collaboration at the G7 Summit later this month, where India is also invited.

The idea is to develop a ‘Just Energy Transition Partnership (JETP)' specific to India considering the position of the country on ensuring climate justice while also addressing the climate changes as well as its commitments to raising the share of renewable sources in its energy mix.

Furthermore, G7 has already set up a similar transition plan worth $8.5 billion for South Africa, which has specified its intent to neutralize coal-based power plants in line with lowering the emissions substitutes.

The JETP paper for India, which is currently under the government's consideration, has suggested a two-faced approach. In the first phase, the focus will be on lowering the carbon intensity of India by integrating renewable energy for generating power.

This would signify that specific investments are made in deploying energy storage and modernization of power apart from introducing new green technology.

The G7 has also devised plans to develop thermal plants that are presently in development stage and is gradually pulling the plug on coal mines.

Explicitly, it has been suggested that if India agrees, then reducing the pipeline of coal-fired power plants that are under development, piloting just transition elements like coal-fired power plant alteration and coal mine closure.

Apart from this, it has also proposed that the targeted efforts should be made in this phase to increase the production of green hydrogen and ammonia for industrial energy use while also enhancing the energy efficiency across the transport, power, building and industry sectors.

In the second phase, the G7 has suggested making additional efforts to broaden support across a broader range of areas like transportation and industrial decarbonization needs.

Source Credit - https://economictimes.indiatimes.com/industry/renewables/us-germany-propose-india-g7-partnership-to-fund-decarbonisation/articleshow/92024685.cms