Germany pledged an additional 10 billion euros in aid to India on Monday in order to help the country meet its 2030 climate action goals, which include obtaining 50% of its energy from renewables and installing 500 GW of non-fossil fuel generating capacity.
“Germany intends to strengthen its financial and technical cooperation as well as other assistance to India, with a long-term goal of at least 10 billion euros in new and additional commitments under this Partnership (for green and sustainable development) until 2030,” according to a joint statement released after the sixth India-Germany Inter-Governmental Consultations (IGC) here.
Indian PM on Germany Visit
Following conversations between Prime Minister Narendra Modi and German Chancellor Olaf Scholz, the two leaders released a joint statement. The two leaders decided to form a bilateral ministerial mechanism inside the IGC to guide the partnership’s political direction.
India pledged to achieve net-zero emissions by 2070 and to source 50% of its energy needs from renewables by 2030 at the COP-26 in Glasgow. It also promised to build 500 GW of non-fossil fuel generating capacity and reduce carbon intensity by 45 percent by 2030 compared to 2005 levels.
“This will help them accomplish their ambitious goals in climate change and sustainable development, stimulate German-Indian research and development (R&D), encourage private investment, and leverage more finance, according to the statement.
Mr. Modi and Mr. Scholz both stated that the Indo-German Cooperation on Sustainable Development and Climate Action is guided by their commitments under the Paris Agreement and the SDGs, which include limiting global average temperature increases to well below 2 degrees Celsius above pre-industrial levels and to 1.5 degrees Celsius above pre-industrial levels.
Both sides agreed to construct an Indo-German Green Hydrogen Roadmap based on recommendations from the Task Force sponsored by the Indo-German Energy Forum as a deliverable of the Indo-German Partnership for Green and Sustainable Development (IGEF).
They also decided to form an Indo-German Renewable Energy Partnership to work on innovative solar energy and other renewables, as well as the problems that these technologies provide for power grids, storage, and market design in order to promote a just energy transition. The two presidents also agreed to look into collaborating on green energy corridors including the Leh-Haryana transmission line and a carbon-neutral Ladakh project.
Through the Global Initiative for Catastrophe Risk Management, both sides agreed to expand collaboration on risk finance and insurance solutions for climate and disaster risks, as well as capacity building. India’s decision to join the InsuResilience Global Partnership was hailed by Germany.
Both sides agreed to strengthen collaboration with the Indian and German private sectors in the context of public-private partnerships for innovation and investments in SDGs and climate goals, specifically through DeveloPPP and structured funding mechanisms to mobilize the private sector, according to the joint statement.