The UK government has announced that it will invest $1.2 billion in India's renewable and green sectors across the public and private sectors. The announcement came ahead of the November COP26 climate conference, which is being hosted in Glasgow, and the funding has been welcomed as a driver of India's burgeoning green sector.
The investment package will include a billion dollars of investment from CDC, which is the green finance institution set up by the UK specifically for these kinds of global investments. It will be used to help fund new green projects and jointly funded investments from both governments with the aim of helping innovative Indian firms find new solutions to energy challenges.
Both countries have also said that they are strongly in support of the new Climate Finance Leadership Initiative (CFLI), which is being led by global financial institutions that are collectively responsible for over $6 trillion of assets. The chair will be UN Special Envoy on Climate Ambition and Solutions, Michael Bloomberg.
Rishi Sunak, the Chancellor, has worked with Nirmala Sitharaman, his Indian counterpart, to agree that their ambitions will be bold when assessing potential synergies in the forthcoming trade negotiations between the nations. This would help to unlock new opportunities for green firms in both countries.
Green growth is a shared priority in the UK and India alike, with both countries keen to invest in innovative new solutions that aid the drive towards a low-carbon economy and which create thousands of skilled new jobs in the process.
Bilateral trade between the UK and India was worth over £18 billion last year and already supports nearly 500,000 jobs between both economies. Through a free trade agreement and investment in green industries, it is hoped that mutual trade could double by 2030.