Germany Pledges €10 Billion to Assist India in Reaching Its Green Energy Target – EQ Mag Pro
At the conclusion of the sixth India-Germany Inter-Governmental Consultations that was held in early May, Indian Prime Minister Narendra Modi and German Chancellor Olaf Sholz signed a joint declaration of intent that will lead to the establishment of a “Green and Sustainable Development Partnership”.
According to the joint declaration, the German government has pledged €10 billion (US$10.52 billion) in financial aid to support India in its efforts to install 500GW of green energy generation capacity by 2030. Here, green energy is defined as energy sources alternative to fossil fuels. This event was covered by news media worldwide.
German and Indian officials also signed a series of documents that relate to cooperation in the fields of energy and environmental protection. For instance, Germany will provide financial and technical assistance to help India in reduction of greenhouse gases, development of green hydrogen infrastructure, restoration of forest landscape, improvements in usage of agricultural land, protection of biodiversity, etc. Furthermore, the two countries will collaborate on projects that are located in other countries.
The joint statement says that India and Germany will take account of their respective timetables for reaching the sustainable development and climate targets that they announced at COP26. They will work together and learn from each other in order to achieve their own goals.
Regarding cooperation in the field of energy, an Indo-German Renewable Energy Partnership will be established to promote innovations across renewable energy sectors including solar energy. This partnership will also drive improvements in electricity grids, adoption of energy storage equipment, and creation of market models that allow for a more efficient and equitable energy transition process. Saur Energy in its coverage of this event reported that Germany has expressed willingness in providing India with concessional loans of around €1 billion during the 2020-2025 period. These loans will be purposed for the development of projects related to solar PV and circular economy. However, whether such assistance will come forth depends on the availability of funds and the quality of the projects.
Moreover, both countries will jointly formulate a green hydrogen roadmap in accordance with the findings of the Indo-German Energy Forum. Other projects that they will be collaborating on include the Leh-Haryana “green energy corridor” and a carbon neutral Ladakh.
Indian and German Governments Will Encourage Their Respective Private Sectors to Work Together and Form Public-Private Partnerships for Investments in Sustainable Development Goals
At the same time, documents on triangular development cooperation and renewable energy partnership were signed by India’s External Affairs Minister S. Jaishankar and German Minister for Economic Cooperation and Development Svenja Schulze. On social media, Jaishankar said the officials of both countries have engaged in in-depth discussions about various geopolitical and trade issues, including building a resilient and reliable supply chain.