US exit from Paris accord won’t thwart India’s energy ambitions
transportation demand will mean an expanding market for batteries for electric vehicles, fuel cells and third-generation biofuels. None of these market opportunities require the Paris Agreement per se.
Third, energy security matters for both countries. India and the United States need to raise the dialogue on maritime security cooperation in the Indian Ocean region, to ensure security of energy supply routes. Another emerging area of concern is the security of the electricity grid against cyber attacks. There is already a joint programme on transforming India’s grid. Grid stability and cybersecurity could offer a sustained basis for cooperation, technology exchange and commercial investment.
Fourth, the uncertainty in U.S. federal policies towards renewable energy has made India’s renewable energy market relatively even more attractive, not just for its size (175 GW by 2022) but for the investment opportunity that credible, long-term policies offer. India saw nearly $10 billion invested, both in 2015 and in 2016, in renewable energy projects. Last year, $1.9 billion of green bonds were issued. India’s solar targets, alone, need $100 billion of debt. These are huge investment opportunities for U.S.-based firms, as well as manufacturers.
The past decade had many instances of transformational deals (bilateral and multilateral) for India and the United States. President Trump’s announcement on the Paris agreement is highly unfortunate, but does not close the door completely. There are still many avenues to continue transacting. The negotiations will be tough but, as a businessman, Mr Trump should know a good deal when he sees one.