Australia-India Ties Strengthened by Climate and Clean-Tech

Context

Australia’s Ambassador for Climate Change, Kristin Tilley, stated in an interview that collaboration between India and Australia on climate change and clean energy technologies is becoming a crucial aspect of their strengthened economic partnership.

Details

• Economic Cooperation Agreement: The ongoing negotiations for the Comprehensive Economic Cooperation Agreement (CECA) between Australia and India include significant components on clean energy technologies. This agreement is poised to strengthen bilateral ties through shared interests in sustainable development.

• Climate Change and Clean Energy Technologies: Australia’s Ambassador for Climate Change, Kristin Tilley, highlighted that cooperation on climate change and clean energy technologies is becoming a central aspect of the economic partnership between the two nations. This includes a focus on solar energy, solar supply chains, and green hydrogen.

• Financial Commitment to Climate Action: Australia has recognized the need to scale up global climate finance flows and has committed to increasing its contribution from USD 2 billion to USD 3 billion. This is part of the broader discussions to set a new target for climate finance that exceeds the current USD 100 billion per year.

• Strategic and Economic Partnership: The collaboration on clean energy transition and technologies is expected to form a key pillar of the growing economic and strategic partnership. This includes working on critical minerals, solar supply chains, and potentially green hydrogen as areas of mutual interest.

Comprehensive Economic Cooperation Agreement (CECA) between Australia and India

• CECA, as well as the Comprehensive Economic Cooperation Agreement between Australia and India, is the most important trade negotiation, which is negotiated between Australia and India. The objective of this initiative is to develop economic relations as well as liberalise trade in both goods and services, by eliminating trade-related obstacles.

• Negotiations over CECA started in May 2011 but were suspended in 2016. They had been re-introduced in September 2021 to serve the purpose of finalising an intermediary agreement, referred to as the Economic Cooperation and Trade Agreement, which would be seen as a basis for the comprehensive CECA.

• ECTA as a Precursor: ECTA, an Economic Cooperation and Trade Agreement, was signed on April 2 and entered into force on 29th, December in the same year. It makes a deal more complete by giving a trade in goods and services and is perceived to be an intermediary step towards the comprehensive CECA.

• Trade and Economic Benefits: CECA is destined to create the current future advantages through the elimination of the duties on the considerable volume of Australian goods delivered to India. This will definitely spread out covering more products for the period of 10 years hence, realising a consistent trade that is mutual.

• Strategic Importance: The agreement is critically strategic for both countries, it is through this window that cooperation will be furthered in terms of education, agriculture, energy, resources, tourism, healthcare, financial services, infrastructure, science, innovation and sport. It also dedicates itself to the mineral side and clean energy technologies, which are crucial in tough periods of transition from high carbon to a carbon-free economy.

• Current Status: CECA negotiations have been relaunched, as they are built upon this agreement using all the available possibilities for a deeper economic relationship beyond the ECTA arrangements. We invite the stakeholders to be part of the process of information sharing to help us in the continuous negotiations.

Conclusion

The increasing collaboration between Australia and India demonstrates their mutual dedication to tackling issues such as climate change on a global scale. Their emphasis on clean technology and environmental initiatives as part of their economic cooperation agreement highlights the significant emphasis both countries place on promoting sustainable development. This partnership goes beyond just economic advantages, as it is a joint effort towards a more sustainable future. By combining Australia’s clean technology innovations with India’s large market and manufacturing capacities, both nations are leading the way in global cooperation to address climate change.

Source:  The Indian Express

UPSC Mains Practice Question

Q.Discuss the significance of climate and clean-tech cooperation in strengthening ties between Australia and India. How can collaborative efforts in these areas contribute to addressing global environmental challenges while fostering bilateral relations? Analyse with relevant examples and suggest potential future avenues for partnership.

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