With the COP26 just around the corner, the UK and Indian governments have agreed upon a new package of funding worth nearly £1million that has been designed to accelerate the low-carbon transition.
On the 2nd of September a package was agreed at the 11th Economic and Financial Dialogue between the two nations, hosted over video call and attended by UK Chancellor Rishi Sunak and Indian finance minister Nirmala Sitharaman.
The Climate Finance Leadership Initiative (CFLI) India partnership, the package consists of both public funding from the two national governments, and commitments to mobilise investment from the private sector.
The timeline for raising and allocating the money has not yet been confirmed. Although, the UK Government has stated that the CFLI India partnership will build on the existing CFLI group, which convenes financial organisations with more than £5.5trn of assets under management collectively.
“The UK and India already have strong ties, and today we’ve made important new agreements to boost our relationship and deliver for both our countries,” Sunak said.
“Supporting India’s green growth is a shared priority so I’m pleased that we’ve announced a $1.2bn investment package, and launched the new CFLI India partnership, to boost investment in sustainable projects in India as the UK gears up to host COP26.”
The launch of the investment package follows on from a visit to India by COP26 President Alok Sharma last month.
It also comes after the Boris Johnson has come out with a new slogan for the UK’s priorities for COP26, promising new domestic pledges and new plans to garner international commitments on “coal, cars cash and trees”.
In August, the UK Prime Minister stated that the goals are “hugely ambitious and will require a massive amount of global diplomacy and imagination” but that nations “must be ambitious for COP26, no matter how difficult it looks now”.
He also emphasised the potential economic benefits of the net-zero transition, amid reports that backbench Conservative Party MPs are raising concerns about the cost of measures designed to reduce emissions through forthcoming policy packages such as the Heat & Buildings Strategy.
As well as the COP26, a UK-India trade deal is on the near horizon, with negotiations due to begin before the end of the year. Sunak and Sitharaman stated during last week’s meetings that they would be “ambitious” when considering services when negotiating. The UK-India 2030 Roadmap, published earlier this summer, targets a doubling in trade between the two nations this decade.
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