[1/3]US Treasury Secretary Janet Yellen addresses the media, along with Indian Finance Minister Nirmala Sitharaman, on the sidelines of a G20 meeting in Gandhinagar, India, July 17, 2023. REUTERS/Amit Dave
GANDHINAGAR, India, Jul 17 (Reuters) – The United States is working with India to develop ways to lower capital costs and increase private investment to accelerate India’s energy transition, US Treasury Secretary Janet Yellen said Monday.
Following a bilateral meeting with Indian Finance Minister Nirmala Sitharaman on the sidelines of a G20 meeting, Yellen said the two nations are working together on a range of economic issues, including trade and technology cooperation and strengthening supply chains.
“We particularly look forward to working with India on an investment platform to deliver lower capital costs and increased private investment to accelerate India’s energy transition,” she said in a statement while attending the G20 in Gandhinagar, the capital of Gujarat. one of the most industrialized states in India.
Yellen did not refer to this platform as a ‘Just Energy Transition Partnership’ (JET-P), although other countries, including South Africa, Indonesia and Vietnam, have already reached agreement with public and private sector lenders to support their shift away from fossil fuels. help accelerate fuels through JET-Ps established with richer countries.
Energy analysts say India — a big emitter in absolute terms but relatively less per capita — wants a JET-P on its own terms: no coal phase-out and clean energy expansion funds in the form of grants, no loans.
Wealthier, heavy-emitting countries are under pressure to help poorer countries accelerate their transition to cleaner energy ahead of November’s COP28 climate talks in Dubai, while the world is currently off track to meet its climate targets.
At the same time Yellen visited India – her third trip this year and an indication of the growing bond between the two countries – US climate envoy John Kerry was in Beijing to discuss the climate challenge with his Chinese counterpart.
“As we look ahead, we reaffirm our commitment to achieving substantial results through close engagement,” Sitharaman said in a statement, also noting the potential for development cooperation and alternative renewable energy investment platforms.
The improvement in bilateral relations was highlighted during Prime Minister Narendra Modi’s state visit to Washington last month, where a slew of defense and high-tech deals were signed.
Yellen also said the two countries are close to an agreement on the global minimum tax system.
In a landmark 2021 deal pushed by the US, nearly 140 countries agreed to levy a minimum 15% tax on large international companies, along with an additional 25% tax on “excess profits”.
Australia and Japan hope to make progress on the global minimum tax at the G20 meeting.
Some analysts doubt that such a sweeping change in cross-border taxation can be agreed upon, as some governments will want to prioritize national tax regimes.
Yellen will visit Vietnam after the G20 financial meetings on July 18.
Written by Swati Bhat; Adapted by Christian Schmollinger, Lincoln Feast and Simon Cameron-Moore
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