India, US working to unlock USD 1 billion multilateral finance to build safe, secure global clean energy supply chains

India and the United States have called to work together to unlock a USD 1 billion multilateral finance through the International Bank for Reconstruction and Development (IBRD) to establish a partnership in “cutting-edge techno-industrial base” centred on clean energy manufacturing techniques and catalysing India’s domestic clean energy supply chain buildout.
The funding could support supply-side manufacturing capacity expansion for key technology verticals, focusing on solar, wind, battery, energy grid systems, and high-efficiency air conditioner and ceiling fan supply chains. Over time, we seek to mobilize additional financing into priority clean energy manufacturing sectors that harness public and private financial tools and pioneer innovative financial vehicles to meet the rapid demand for flexible climate finance solutions.
The United States and India intend to elevate and expand bilateral technical, financial, and policy support to expand complementary U.S. and Indian manufacturing capacity for clean energy technologies and components and lay the groundwork for enhanced cooperation in third countries, with a focus on partnerships in Africa.
The United States and India intend to work with relevant government agencies, civil society, U.S. and Indian private sectors, philanthropies, and multilateral development banks to identify a package of pilot projects across the clean energy value chain that meet our eligibility criteria and meaningfully contribute to supply chain expansion and diversification in identified sectors, said a White House read out.
The U.S. and Indian governments also pledged to work with industry leaders on identifying near-term investment opportunities to expand manufacturing capacity for specific clean energy supply chain segments. The two countries will also collaborate with the private sector to scope eligible opportunities in the above supply chain segments and support an initial package of pilot projects, ideally including one project focused on clean energy deployment to Africa.
Additional investments plans and sources of funding can be developed over time. This effort would build on private sector partnerships facilitated by U.S. Development Finance Corporation (DFC) across the solar, wind, battery, and critical minerals sectors to pursue opportunities to finance the manufacture of clean energy components. Such investments may be in scope for India’s Green Transition Fund – which will support renewable energy, storage, and e-mobility investments in India and strengthen demand for localized manufacturing – as well as for Indian private equity fund manager Eversource Capital’s new DFC-supported $900 million fund to invest in clean technologies such as renewable energy, efficient cooling, and electric transportation, said the White House readout.
The two countries are also committing to building trilateral relationships with African partners that have stated political commitments to clean energy deployment, focusing on solar and battery storage opportunities. Collaborating with each other and industry to consult on policies that will strengthen demand certainty for locally manufactured clean technologies.
This roadmap is made to serve as a short-term mechanism to “drive initial cooperation on projects” and then help form a long-term roadmap, including “working together to establish a cadence of meetings and milestones for this partnership.” (ANI)