The India and United states announced financial support for research & development in the clean energy and low-carbon technologies. Together, India and United States will contribute $50 million and other $50 million are expected to be privately matched for R&D on potential breakthrough technologies.
The research will be facilitated by the US-India Clean Joint Clean Energy Research and Development Centre which was established in November 2010 between US President Barrack Obama and Indian Prime Minister Dr. Manmohan Singh. The centre will finance academia, institutions and industries to undertake the research projects in both the countries.
The clean energy fund will help in addressing the problem of climate change and energy security by promoting low carbon growth through the research and deployment of clean energy technologies.
As per the agreement, the centre will undertake research and development in the areas of building efficiency, second generation biofuels and solar energy. The program would later add research areas like smart grid, clean coal, carbon capture & storage and integrated gas combined cycle power plants.
“This is the first collaborative research effort of its kind, where Indian and U.S. researchers will be jointly selected,” U.S. Ambassador to India Timothy J. Roemer said in a statement. “It elevates the U.S.-India clean energy cooperation to a new level and is a testament to the strength of our continued strategic partnership.”
The private sector investment in clean energy sector in India will be provided by Overseas Private Investment Corporation (OPIC) and Export-Import Bank. The OPIC has agreed to provide $100 million in financing for Global Environment Fund (GEF). The Export-Import bank will help to support financing for the purchase of US goods and services to be used in clean energy projects in India.
Major Indian companies including Suzlon and Wipro along with American companies such as Marriott, Target, and Walmart will work on pilot projects based on energy efficiency of commercial buildings.
The Indian government had announced a target of reducing carbon intensity by 20-25% from 2005 levels by 2020 just before the 2010 Copenhagen climate change summit. The government has repeatedly called upon the developed countries to help it reach this goal by providing financial and technological assistance.
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