US-India Climate And Clean Energy Agenda 2030

Policy Update
Anamitra Sinha

Background

The launch of the U.S.-India Climate and Clean Energy Agenda 2030 Partnership marks a significant step in the global effort to combat climate change, particularly in light of the recent U.S. elections. With President Trump’s re-election, the commitment to ambitious climate goals might be subject of contention, particularly in reducing greenhouse gas emissions by 50–52% by 2030. This reinforces the urgency and priority placed on

climate action, as the U.S. partners with India to achieve mutual climate goals. India’s target of installing 450 GW of renewable energy by 2030 also positions the country as a key player in the global transition to a cleaner, more sustainable future.

For Indian citizens, this partnership carries profound significance. As a nation that is both heavily impacted by climate change and a major emitter, India’s role in the agenda is critical. The partnership will focus on mobilizing finance, scaling clean energy, and decarbonizing key sectors, which could lead to better job opportunities, innovative solutions in energy, and significant infrastructure development. Moreover, the collaboration could increase the capacity for addressing climate-related challenges, directly benefiting communities across India.

The U.S.-India collaboration not only strengthens both countries’ climate actions but highlights the importance of global partnerships in creating a sustainable future, directly affecting the lives of millions worldwide.

Functioning

The U.S.-India Climate and Clean Energy Agenda 2030 Partnership is designed to foster collaborative action between the two nations, focusing on accelerating clean energy adoption and climate action to meet their ambitious 2030 targets. As a critical part of this agenda, the Strategic Clean Energy Partnership (SCEP) serves as the primary framework for both countries to work together toward common goals, leveraging their strengths in energy security, innovation, and technological development.

The partnership operates across five key pillars: Renewable Energy, Sustainable Growth, Power and Energy Efficiency, Responsible Oil and Gas, and Emerging Fuels. Each pillar represents a distinct focus area where U.S.-India cooperation can drive progress. For example, the Renewable Energy pillar emphasizes the scaling up of clean energy solutions to support India’s 500GW non-fossil fuel target, while the Power and Energy Efficiency pillar works on modernizing grid infrastructure, improving energy storage, and integrating renewable energy into the power system. This will enable both nations to manage rising energy demands while reducing emissions and ensuring energy reliability.

One of the most successful aspects of this collaboration is the emphasis on innovation and technology deployment. The U.S. and India have made significant strides in demonstrating emerging technologies like smart grids, energy storage, and carbon capture. The U.S.-India Collaborative for Smart Distribution Systems with Storage (UI-ASSIST), for instance, is advancing grid innovations that improve both energy security and economic growth. This partnership, involving U.S. and Indian universities, industry partners, and government agencies, is focused on developing clean, affordable energy systems that ensure grid reliability and resilience.

Another example of success is India’s National Open Access Registry (NOAR), which was launched to enhance market participation and integrate renewable energy efficiently into the grid. Through the support of USAID and the Power System Operation Corporation (POSOCO), NOAR has become a centralized platform that streamlines the short-term approval process for power transactions. This, in turn, fosters transparency and market efficiency, helping India achieve its clean energy goals.

The partnership also recognizes the importance of engaging the private sector to facilitate rapid technology deployment and create economic opportunities for both countries. This collaboration has led to real-world impacts, such as the redesign of India’s ancillary services market to better integrate renewable energy into the grid, and the launch of the Smart Grid Knowledge Centre (SGKC) in India, which serves as a global center of excellence for smart grid solutions.

Impact

The U.S.-India Climate and Clean Energy Agenda 2030 Partnership has demonstrated a significant impact on advancing clean energy goals, fostering innovation, and driving collaboration between the two nations. This partnership, a pivotal aspect of the broader U.S.-India Strategic Clean Energy Partnership (SCEP), has proven to be a key driver in the pursuit of climate and clean energy solutions, benefiting both countries through the integration of renewable energy, improved energy efficiency, and the deployment of cutting-edge technologies.

A cornerstone of the partnership’s success has been its focus on capacity building and knowledge sharing. Notably, the U.S. Agency for International Development (USAID) has played a critical role in strengthening the capabilities of Indian regulators and industry leaders. Through targeted workshops on financial derivatives and forward contracts, USAID has enhanced the regulatory framework governing India’s power sector. These workshops have equipped Indian officials with the necessary skills to manage complex energy markets, particularly in the context of increasing renewable energy integration. This capacity-building initiative exemplifies the partnership’s commitment to ensuring that both nations have the tools and expertise required to manage their evolving energy systems.

The partnership has also made remarkable strides in energy storage development, which is essential for balancing the increasing share of renewable energy in India’s power grid. For example, the technical assistance provided by USAID to the Central Electricity Authority (CEA) to promote Pumped Hydro Energy Storage (PHES) has enabled India to assess and identify ideal sites for energy storage infrastructure. These efforts help stabilize the grid and optimize the use of renewable energy, a crucial step toward India’s renewable energy targets. Additionally, collaborations between U.S. and Indian stakeholders on long-duration battery storage, showcased at the Renewable Energy India Expo 2022, have opened up new partnership opportunities to advance this technology.

Energy efficiency improvements have also been a major focus of the partnership. Through collaborative efforts, such as the development of a Building Sector Outlook by the U.S. Department of Energy (DOE) and the Indian Ministry of Power, both countries are working together to reduce the carbon footprint of buildings. This initiative, aimed at addressing both operational and embodied carbon, is complemented by work to improve energy efficiency in other key sectors, including Indian Railways. Workshops and initiatives targeting energy efficiency retrofitting in Indian Railways’ infrastructure highlight the partnership’s wide-ranging impact.

The U.S.-India Climate and Clean Energy Agenda 2030 Partnership has also fostered the adoption of super-efficient appliances, which are critical to making clean energy solutions accessible and affordable. By promoting the widespread use of energy-efficient fans among low-income consumers, the partnership is directly contributing to India’s goal of reducing energy consumption while improving quality of life for its citizens.

Way Forward

The U.S.-India Climate and Clean Energy Agenda 2030 Partnership is poised to build on its successes by focusing on several key priorities to drive sustainable and inclusive growth in both nations. One of the immediate goals is modernizing power system infrastructure to enhance reliability, security, and efficiency, with particular emphasis on integrating renewable energy sources, deploying smart grids, and leveraging energy storage solutions. This modernization will also be bolstered by the increased use of distributed energy resources, flexible resources, and cybersecurity measures.

In the distribution sector, the partnership will prioritize reform through innovative business models, fostering greater private sector involvement, and accelerating the adoption of smart distribution technologies. Efforts to promote energy efficiency across buildings, appliances, and industries will continue to be a central focus, particularly through the application of information and communication technologies (ICT).

Further steps will include supporting power market transformation through regulatory reforms, fostering business-friendly environments, and enhancing investment opportunities. The integration of power grids across South Asia and the Indo-Pacific will promote clean energy adoption, while industrial decarbonization strategies will focus on sectors like steel and cement, leveraging technologies such as CCUS and hydrogen.

Conclusion

The U.S.-India Climate and Clean Energy Agenda 2030 Partnership is a powerful framework that will continue to catalyze bilateral collaboration on clean energy solutions. As the partnership strengthens efforts to modernize energy infrastructure, enhance efficiency, and promote decarbonization, it offers a sustainable pathway to meeting global climate goals. By focusing on innovation, technology deployment, and market transformation, the partnership not only fosters energy security but also creates economic opportunities that benefit both nations. This strategic cooperation will be instrumental in advancing the global clean energy transition, ensuring that both the U.S. and India emerge as leaders in the fight against climate change.

References

India-US Joint Statement on Launching the “India-US Climate and Clean Energy Agenda 2030 Partnership.” (2021, April 22). Ministry of External Affairs. Retrieved from https://www.mea.gov.in
Joint Statement from the United States and India. (2023, June 22). The White House. Retrieved from https://www.whitehouse.gov
U.S.-India Joint Statement on Launching the “U.S.-India Climate and Clean Energy Agenda 2030 Partnership.” (2021, April 22). U.S. Department of State. Retrieved from https://www.state.gov
U.S.-India Strategic Clean Energy Partnership. (n.d.). U.S. Department of Energy. Retrieved from https://www.energy.gov/sites/default
U.S.-India Strategic Clean Energy Partnership. (n.d.). Press Information Bureau. Retrieved from https://static.pib.gov.in/WriteReadData/specificdocs

About the Contributor: Anamitra Sinha, Policy Research Intern at IMPRI Institute and Master’s student in Development, Policy Planning, and Practice at Tata Institute of Social Science, School of Rural Development, Tuljapur (Off-Campus).

Acknowledgment: This article was reviewed by IMPRI experts and other collaborators.