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Source: The post is based on the article “India-G7 JETP stuck over coal, Centre’s insistence on own transition plan” published in Business Standard on 5th December 2022
What is the News?
Global efforts to bring India on board the Just Energy Transition Partnership (JETP) with G7 nations have failed to move forward.
What is the Just Energy Transition Partnership(JETP)?
The G7 countries had decided to launch a Just Energy Transition Partnership(JTEP) with India, Indonesia, Vietnam and Senegal this year.
This partnership is aimed at helping large developing economies to move away from coal in their electricity systems and achieve the Paris climate goals.
Germany and the US are the two G7 nations that are co-leading the negotiations with India to join JETP.
Have any developing countries signed JETP with G7?
The JETP initiative is modelled after the South Africa JETP launched at the COP26 in Glasgow with the support of the United Kingdom (UK), the United States (US), France, Germany, and the European Union (EU).
South Africa has been promised to finance worth $8.5 billion in the first phase through mechanisms such as grants, loans and investments to meet its Nationally Determined Contribution (NDC) goals.
At the 27th G20 summit, Indonesia also announced its JETP with G7 nations co-led by Japan and the US for $20 billion. The Indonesian JETP is primarily focused on the phase-out of coal from the economy.
Why has India not signed the JETP with G7?
Firstly, India has refused to put ‘coal phase-out’ on the negotiation table and wants to design its own “transition plan”.
Secondly, talks on JETP have also stalled over differences in approaches on coal. US wants to include decommissioning of assets aka coal phase-out as part of the discussion. However, India is pushing for climate funds for renewable energy, technology transfer and green jobs.