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As the US climate support wanes under Trump 2.0, India pivots—seeking new partners to safeguard its clean energy future and global climate leadership
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India has recently reached a pivotal moment in its clean energy transition, recording an unprecedented 25 gigawatts (GW) of renewable energy capacity addition in FY 2024–25—the highest annual increase in its history. With cumulative non-fossil fuel capacity now surpassing 222.86 GW, the country has firmly established itself as a cornerstone of the world’s clean energy future. However, this progress masks persistent structural challenges— from grid integration and limited storage capacity to uneven energy access—that underscore the continued need for strong international cooperation.
The United States (US) has long played a catalytic role in advancing India’s clean energy ambitions through bilateral agreements, technology partnerships, and green trade channels. However, President Donald Trump’s second withdrawal from the Paris Agreement and the renewed rollback of clean energy financing have sent a clear signal: the US is becoming an increasingly unreliable partner for climate cooperation. These policy reversals have disrupted key pillars of India’s green transition, from financial flows and technology access to global market linkages.
With cumulative non-fossil fuel capacity now surpassing 222.86 GW, the country has firmly established itself as a cornerstone of the world’s clean energy future.
The growing uncertainty necessitates India to rethink its climate diplomacy playbook. It must now recalibrate its engagement strategy—diversifying partnerships and architecting a new approach to climate multilateralism—both geopolitically pragmatic and structurally resilient. The urgent questions before India are: what disruptions will arise from the US's retreat from climate action, and who can help India stay on track with its green transition goals?
The first disruption lies in securing climate finance. With nearly US$1 billion in climate investments made through the US International Development Finance Corporation (DFC) towards advancing clean energy projects, India risks losing scale and momentum if these flows are interrupted. The European Union (EU) is emerging as a credible and steady partner. Through the India-EU Clean Energy and Climate Partnership (CECP), the EU has committed over 200 million euros in concessional finance and technical assistance, supporting energy efficiency improvements, grid integration of renewables, and clean energy infrastructure at the sub-national level in states like Maharashtra, Tamil Nadu, and Gujarat. With the CECP poised to scale up support in the 2025–28 phase, there is strong potential to fill financing gaps left by wavering US commitments. However, India must overcome a persistent bottleneck: fragmented state-level planning and varying regulatory regimes that hinder investment absorption at the sub-national level. To strengthen this partnership and accelerate the flow of European climate finance, India must offer clearer, bankable investment pipelines aligned with EU taxonomy standards, ensure greater harmonisation of green projects across states, and institutionalise coordination through mechanisms such as the newly launched India-EU Trade and Technology Council.
The Strategic Clean Energy Partnership (SCEP), backed by consistent US technical and financial support, has been vital in battery storage, grid modernisation, and clean railways.
The second disruption lies in the collaborative infrastructure that has propelled India’s renewable energy progress. The Strategic Clean Energy Partnership (SCEP), backed by consistent US technical and financial support, has been vital in battery storage, grid modernisation, and clean railways. Joint research on advanced lithium-ion batteries, support for smart grid development, and feasibility studies for Indian Railways' decarbonisation highlight the depth of this engagement. Additionally, the US International Development Finance Corporation’s US$425 million concessional loan to Tata Power for a solar manufacturing facility in Tamil Nadu has helped strengthen domestic capacity. These efforts risk stalling without continued US involvement.
In this context, Germany and the EU—leaders in energy efficiency, decentralised renewables, and green transport—are well-placed to fill the gap. Through GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) and the CECP, they have co-developed demonstration projects in Gujarat, Tamil Nadu, and Maharashtra, including solar mini-grids, electric mobility pilots, and municipal energy systems. India can deepen these ties by pursuing long-term joint ventures in offshore wind, launching vocational training for green jobs, and co-investing in grid integration pilots. As India’s energy mix becomes more variable, especially in solar- and wind-rich states, flexible grids and smart storage solutions will be essential to sustain momentum.
A third area of concern is technology transfer. The US-India partnership has historically fueled clean tech innovation through programmes such as PACE-R and the iCET initiative, which enabled joint research on green hydrogen, Electric Vehicle (EV) battery chemistries, and carbon capture. A US pullback could slow India’s progress, especially in industrial decarbonisation and clean mobility. Meanwhile, despite strategic tensions, China dominates critical parts of the global clean tech supply chain, including solar Photovoltaic (PV), battery storage, and critical minerals. Re-engaging through platforms, including the India-China Climate Dialogue or BRICS’ (Brazil, Russia, India, China, and South Africa) green innovation networks, could help India retain access to frontier technologies. A ‘risk-managed collaboration’ approach—built on co-development with Indian firms, protected IP agreements, and third-country manufacturing hubs in the Global South—can make such partnerships more secure and strategic.
As India’s energy mix becomes more variable, especially in solar- and wind-rich states, flexible grids and smart storage solutions will be essential to sustain momentum.
Simultaneously, the EU’s Horizon Europe programme presents a promising avenue for collaborative climate research and development (R&D). India can deepen its participation by aligning domestic innovation missions with European funding calls and positioning its research institutions and startups as agile, solution-oriented partners in green tech development.
Finally, a US retreat would leave a significant gap in multilateral forums where Washington has historically amplified calls for inclusive and just climate finance. As India positions itself as a leading voice for the Global South, it must find and forge alliances to carry this agenda forward. As the incoming BRICS chair and host of COP30, Brazil is emerging as a key partner through its ‘Baku to Belém’ roadmap, which aims to mobilise US$1.3 trillion in climate finance for the Global South by 2035. India can play a pivotal role in shaping this effort by co-developing the roadmap, aligning its G20 priorities with BRICS objectives, and spearheading a South-South facility that pools domestic and multilateral resources to fund adaptation and resilience efforts.
Meanwhile, a growing share of agile climate finance comes from non-state actors. Philanthropic institutions like the Bezos Earth Fund and the IKEA Foundation are deploying billions towards high-risk, high-impact interventions. To tap into this momentum, India must build a proactive ecosystem—anchored by a national climate philanthropy platform—that aligns domestic priorities with global philanthropic mandates. Such a platform can enable fast-track funding for locally led innovations, particularly those focused on climate resilience, just transitions, and community-based adaptation.
Philanthropic institutions like the Bezos Earth Fund and the IKEA Foundation are deploying billions towards high-risk, high-impact interventions.
India should not see the US retreat from climate action as an end, but a realignment. By diversifying partnerships and grounding new alliances in trust and shared purpose, India can buffer external shocks and emerge as a leader in global climate cooperation.
Aparna Roy is a Fellow and Lead Climate Change and Energy at the Centre for New Economic Diplomacy (CNED) at the Observer Research Foundation.
Radhey Wadhwa is a Research Intern at the Observer Research Foundation.
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Aparna Roy is a Fellow and Lead Climate Change and Energy at the Centre for New Economic Diplomacy (CNED). Aparna's primary research focus is on ...
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