Climate Action and Finance Mobilization Dialogue (CAFMD)

In News

• India and the US launched the Climate Action and Finance Mobilization Dialogue (CAFMD).

About

• The CAFMD is one of the two tracks of the India-U.S. Climate and Clean Energy Agenda 2030 partnership launched at the Leaders’ Summit on Climate in April 2021.

• India and the U.S. are collaborating to reach green energy targets.
  • The United States is to collaborate with India to work towards installing 450 GW of renewable energy by 2030.
  • Currently India’s installed power capacity is projected to be 476 GW by 2021-22 and is expected to rise to at least 817 GW by 2030.
• It would have three pillars: 
  • Climate Action Pillar: It would have joint proposals looking at ways in which emissions could be reduced in the next decade. 
  • Roadmap Pillar: It would be setting out a roadmap to achieving the 450GW in transportation, buildings and industry. 
  • Finance Pillar: It would involve collaborating on attracting finance to deploy 450 GW of renewable energy and demonstrate at scale clean energy technologies. 

• A key mission of the US is to build global support for ‘Net Zero’, or carbon neutrality, and is critical to ensuring that the planet doesn’t heat up an additional half a degree by 2100.
• The launch was preceded by a bilateral meet where both sides discussed at length a wide range of climate issues relating to COP26, Climate Ambition, Climate Finance, Global Climate Initiatives including International Solar Alliance (ISA), Agriculture Innovation Mission for Climate (AIM4C).

Significance

• It will help to demonstrate how the world can align swift climate action with inclusive and resilient economic development.
• It will provide both countries an opportunity to renew collaborations on climate change while addressing financing aspects and deliver climate finances primarily as grants and concessional finance as envisaged under the Paris Agreement.
• The dialogue would serve as a “powerful avenue” for the U.S.-India collaboration.

Net Zero Discussion

• The world has to reach a net zero global standard by 2050. 
• A major theme building ahead of the climate talks in Glasgow, Scotland, this November is the question of how many nations can commit to a net zero target and by when. 
• A little over 120 countries have committed, with varying degrees of firmness, to reaching carbon neutrality by 2050. 
• Five countries have net zero pledges set for after 2050, including Australia and Singapore, which haven’t set a firm target yet.
• The United States has set a target of halving pollution by 2030 from 2005 levels towards the net zero target. 
  • The President of the US has also committed to phasing out the use of fossil fuel by 2035 for power generation.
• India has so far abstained from committing to a net zero goal but is on a climate pathway that is compatible with keeping global temperatures to below 2C by the end of the century. 

Way Ahead

• India and the United States are natural partners with shared values and their agenda encompasses all major pillars of our strategic priorities – including defence, security, energy, technology, education and healthcare.
• India and the US are in a position to lead the world in tackling Climate Change.

Sources: TH + PIB