India-G7 partnership proposed for creating decarbonization fund

On behalf of the G7, the US and Germany have proposed setting up just energy transition partnership (JETP) partnership to help fund and support India’s transition from a fossil-based economy to a carbon-neutral economy.

The JETP paper for India, which is currently under consideration of the government, has suggested a two-phased approach. In the first phase, the focus would be on reducing India’s “carbon intensity” by deploying renewable energy in power generation.

In the second phase, the G7 has suggested that it would make additional efforts to widen support across a wider range of areas, including industrial and transportation decarbonisation needs.

The two countries are keen to announce the partnership at the G7 Summit, where India has been invited.

The G7 already has a similar $8.5 billion transition plan with South Africa, which has stated its intent to decommission coal-based power plants in lieu for lower emission alternatives.