India-US Energy Ties: Russia Oil, Climate Policy & Trade Deal Tensions

by Chief Editor

India’s Climate Pivot: Balancing Energy Security and Global Partnerships

Recent shifts in global climate and energy policy are reshaping international relationships, particularly between the United States, and India. Whereas the U.S. Has seen a “volte-face” on climate norms, India is increasingly positioned as forward-facing, emphasizing both national interests and a surprising pivot in its approach to climate policy.

The Shifting Sands of US-India Climate Cooperation

Historically, climate cooperation between the U.S. And India enjoyed bipartisan support. Even during the first Trump administration, collaboration on energy security – including renewables – was a priority. However, diverging paths and recent trade disputes are creating uncertainty. A February 6th trade deal proposed lowering U.S. Tariffs on Indian goods, contingent on India ceasing oil imports from Russia. This condition was not met by the Modi government.

India’s Energy Security Imperative

India’s energy policy is fundamentally driven by its need for energy security. The nation imports approximately 87% of its crude oil due to limited domestic reserves. Diversifying oil sources is therefore a key strategic objective. Prior to the 2022 Russia-Ukraine war, Russia was a negligible oil supplier to India. it has since become the largest. This reliance, while creating tension with the U.S., is unlikely to change rapidly.

Decarbonization as Economic Modernization

India is increasingly framing decarbonization not just as an environmental necessity, but as an extension of its economic modernization, energy security, and industrial policy. This strategic climate statecraft involves selectively engaging with the UN Framework Convention on Climate Change (UNFCCC) while simultaneously pursuing independent avenues for financing, technology, and market access.

The U.S.-India Climate and Clean Energy Agenda 2030

Despite recent tensions, the U.S.-India Climate and Clean Energy Agenda 2030 Partnership, launched in April 2021, remains a core venue for bilateral collaboration. This partnership focuses on accelerating clean energy deployment, strengthening research collaborations, and mobilizing finance for a net-zero future. It operates through two main tracks: the Strategic Clean Energy Partnership and the Climate Action and Finance Mobilization Dialogue.

A Contrast in Climate Diplomacy

India’s climate diplomacy differs significantly from that of the United States. India selectively champions equity norms while simultaneously prioritizing its development needs. This approach contrasts with the U.S., and highlights the complexities of international climate negotiations as major powers anchor their climate policies in domestic economic and strategic priorities.

Pro Tip: Diversification of energy sources is a common strategy for nations seeking to enhance energy security, even if it creates diplomatic challenges.

Looking Ahead: Navigating a Fragmented Green Transition

The global green transition is becoming increasingly fragmented and contested. The post-pandemic recovery, inflation, and geopolitical events have made it harder to achieve consensus on climate action. India’s ability to balance its energy security needs with its climate commitments will be crucial, not only for its own development but also for the success of global climate efforts.

FAQ

Q: What is the U.S.-India Climate and Clean Energy Agenda 2030 Partnership?
A: It’s a partnership launched in 2021 to strengthen cooperation on clean energy, climate action, and finance mobilization.

Q: Why is India still importing oil from Russia?
A: India imports nearly 87% of its crude oil and is diversifying its sources to ensure energy security.

Q: How is India approaching climate change?
A: India is framing decarbonization as integral to its economic modernization and energy security, pursuing both international collaboration and independent initiatives.

Did you know? India’s Prime Minister Modi’s leadership in renewable energy has contributed to lowering prices globally.

Explore further: Read more about India’s new climate statecraft at the Council on Foreign Relations.

What are your thoughts on the future of US-India climate cooperation? Share your insights in the comments below!

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