Energy transition: Show us the money

On Sunday, European Commission (EC) president Ursula von der Leyen said that the European Union (EU) and India must step up their cooperation in renewable and clean energy sectors. This, she added, must be done in their “common interest” to reduce dependence on foreign oil (she was referring to the Ukraine war and its impact on Europe’s energy landscape; Russia accounts for a tiny fraction of India’s energy basket but a significant portion of the EU’S), tackle extreme weather events, and meet their respective energy needs.

Ms von der Leyen’s comments on the enhanced Eu-india green energy partnership are significant because both are important players in international climate diplomacy and have had an Eu-india Clean Energy and Climate Partnership since 2016. India can benefit from the expertise of European green technology companies and its pledge to reach 500 GW in renewable energy capacity by 2030 is an economic opportunity for European industry.

However, at the core of these enhanced opportunities is the need to ensure access to the best technologies and scalable finance. The West (including EU) has failed to deliver the existing $100 billion a year target by 2020 to the developing world. Developed countries must identify means of reducing the cost of finance for developing nations. This is important because investing in the energy transition in emerging economies such as India is cheaper than in developed countries. Such investments also underscore the principle of climate justice, which India has consistently raised at international forums for decades. To paraphrase a line from Hollywood movie Jerry Maguire: Show us the money.