U.S. and India working to make investment easier for energy transition, says Yellen

Subject : Environment

Section: International Conventions

Concept :

The United States is working with India to develop ways to lower the cost of capital and increase private investment to fast-track India’s energy transition, U.S. Treasury Secretary Janet Yellen said on Monday.
After a bilateral meeting with India’s finance minister Nirmala Sitharaman on the sidelines of a G20 meeting, Yellen said the two nations have been collaborating across a range of economic issues, including commercial and technological collaboration and strengthening supply chains.
Yellen did not refer to this platform as a ‘Just Energy Transition Partnership’ (JET-P), though other countries including South Africa, Indonesia and Vietnam have already agreed with public and private sector lenders to help accelerate their shift away from fossil fuels via JET-Ps established with wealthier nations.

About Just Energy Transition Partnership (JET-P):

It is a mechanism for multilateral financing by developed countries to support an energy transition in developing countries.
It aims to reduce emissions in the energy sector and accelerate the coal phase-out.
Transition describes the gradual movement towards lower carbon technologies, while ‘Just’ qualifies that this transition will not negatively impact society, jobs and livelihoods.
It was launched at the COP26 in Glasgow with the support of the United Kingdom (UK), the United States (US), France, Germany, and the European Union (EU).
Senegal has become the fourth country after South Africa, Indonesia and Vietnam to sign the JET-P deal, with the International Partners Group comprising France, Germany, the European Union, the United Kingdom and Canada.
India refused to give its consent saying that coal cannot be singled out as a polluting fuel, and energy transition talks need to take place on equal terms.