Climate Action and Finance Mobilisation Dialogue (CAFMD)

India and the United States launched the Climate Action and Finance Mobilization Dialogue (CAFMD). In a significant step towards defining the contours of Indo-US partnership, the US will provide assistance to help India meet its renewable energy-related targets.

About CAFMD

  • CAFMD is one of the two tracks of the India-U.S. Climate and Clean Energy Agenda 2030 Partnership launched in April 2021.
  • Purpose: To help both the countries move towards decarbonising economies in sync with their respective commitments to deal with climate change.

Pillars of CAFMD

The dialogue is based on three pillars:

  1. Climate Action Pillar: Both countries will develop joint proposals looking at ways in which emissions could be reduced in the next decade.
  2. Finance Pillar: Collaborate on attracting finance to deploy 450 GW of renewable energy and demonstrate at scale clean energy technologies.
  3. Adaptation and Resilience Pillar: The two countries will collaborate in building capacities to measure and manage climate risks. It would include setting out a roadmap to achieving the 450GW in transportation, buildings and industry.

Significance

  • The dialogue would serve as a powerful avenue for strengthening India-US bilateral cooperation on climate and environment.
  • It will provide both countries an opportunity to renew collaborations, address financing aspects and deliver climate finances primarily as grants and concessional finance as envisaged under the Paris Agreement.
  • The US will give financial and technological assistance to India to achieve its target of deploying 450 GW of renewable energy by 2030.
  • Specific areas of cooperation to bring down emissions — in the expansion of transport, buildings and industry — and facilitating funding can advance the India-U.S. Climate and Clean Energy Agenda 2030 Partnership.

India-US Clean Energy Agenda 2030 Partnership

  • It is a joint climate and clean energy initiative between India and the US. At the Leaders’ Summit on Climate on 22 April, 2021, both countries agreed to launch a high-level India-US Partnership which envisages bilateral cooperation on strong actions in the current decade to meet the goals of the Paris Agreement.
  • The Strategic Clean Energy Partnership and the Climate Action and Finance Mobilization Dialogue are the two main tracks of the initiative.
Its objective is to mobilise investments, demonstrate clean technologies and enable green collaborations in India that could also create templates of sustainable development for other developing countries.

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