The other partnerships came through, but a little over two years later, negotiations on a JETP for India are discontinued.
India, the world’s most populous nation with an ever-growing energy demand, has resisted a coal-focused JETP from the time conversations with wealthy countries began, seeking instead one focused on renewable energy and investment in skills.
The country remains heavily dependent on coal to meet its energy demand and increased coal production by 12 percent in 2023-24 (compared to 2022-23), with the government aiming for an up to seven percent annual rise in production over the next six years to reach 1.5 billion tonnes in domestic coal production by 2030.
The country is also investing big in renewable energy projects, aiming to achieve 500 GW in clean energy capacity by 2030.
Flasbarth’s statement has not come as a surprise for analysts tracking dialogue on JETP, though they said this was the first official statement on the matter.
Indian coal giants pushed for lax pollution rules while ramping up production
An Indian analyst familiar with the country’s reluctance with a JETP said the United States and Germany were leading the discussions, but India had not shown much interest. “But this has never been spoken about,” the analyst said, who asked to remain anonymous, because they were not authorised to speak to the media on behalf of their organisation. The analyst added that the International Partners’ Group (IPG) of donor countries, which was trying to get India to the table, will not pursue a JETP anymore.
A coal-focused JETP, like the one with South Africa and Indonesia, would not have worked for India as the fossil fuel not only remains a stable source of energy but is also an income source.
Analysts say that a JETP arrangement does not capture the complexities of the transition of a coal-dependent nation like India, where at least five states have coal-dependent economies and where ten to 15 million people depend directly or indirectly on the planet-heating fossil fuel, according to researchers.
Trade unions had also feared that a JETP focused largely on technical and financial issues would ignore the social aspect of transition.
And then there was the question of lending.
“For G7 countries India was a key country under consideration for striking a JETP. However, the momentum has faded over the past year,” said Srestha Banerjee, director of just transition at the International Forum for Environment, Sustainability & Technology (iFOREST), a global research and policy think tank. “The Indian government has been measured about entering into a JETP given their nature, which has been loan heavy.”
While India is “cautious about taking on additional loans through these partnerships,” it remains open to international engagement and also financial support, which must not increase the debt burden of developing countries, Banerjee said.
Germany’s Flasbarth argued that the architecture of the JETPs has the advantage that donor countries coordinate well. “It means that the different donor countries do not knock on the recipient’s door every few days with a slightly different approach on how to achieve a climate-friendly economy,” he said. “I see this as an advantage, as do many of our recipient countries. India does not.”
