There are growing concerns about how US policies on renewable energy may impact the US-India clean energy partnership, especially with Donald Trump returning to the White House.
Trump, known for his disbelief towards climate change and green energy, has previously called such efforts a “scam.”
Climate experts see his victory as a potential setback, with fears that his administration may reverse significant policies like the Inflation Reduction Act (IRA).
Established under President Biden in 2022, the IRA has been a milestone of US clean energy policy. Now that Mr. Trump is elected as the new President $369 billion in US clean energy initiatives could be at stake.
This policy has attracted Indian companies, especially solar manufacturers, to set up provisions in the US. However, Trump’s return to power and changes in this policy, could disrupt Indian firms’ expansion plans and create uncertainty in the renewable energy sector.
In addition, Trump’s withdrawal from the Paris Climate Agreement and reduced financial support for global climate efforts raise concerns about the future of international climate cooperation.
Trump’s administration, signals a possible shift in the US’s role in global climate leadership at events like COP29, as he is not attending this conference and they may not sign any agreements under this.
Indian and US companies already facing strong competition from Chinese solar manufacturers, who dominate the market with low-cost, government-supported solar panels.
Despite these challenges, Pinaki Bhattacharyya, CEO of AMPIN Energy Transition, remains hopeful about the US-India partnership. He believes the strong relationship between the two countries will continue, focusing on mutual clean energy goals.
The future of US-India renewable energy cooperation will depend on stable policies and a commitment to manage the climate crisis. Experts agree that the climate challenges will continue beyond any single administration, emphasizing the importance of long-term bonds.
Source:
