India will not proceed with the Just Energy Transition Partnership (JETP) initially discussed with donor countries like the US and Germany, aimed at aiding its transition from fossil fuels, particularly coal.

German state secretary Jochen Flasbarth confirmed during the COP29 climate conference that both sides agreed to discontinue the partnership talks, recognising that the deal was not appealing to India, reported Clean Energy Wire.

India, as the world’s most populous nation with soaring energy demands, had consistently resisted a coal-focused JETP. The country is heavily reliant on coal, which it plans to increase production of significantly in the coming years, while also investing in renewable energy, targeting 500 GW of clean energy capacity by 2030. Experts noted that India’s reluctance stemmed from concerns about increased debt, as a coal phase-out could require substantial financial commitments that the government was not prepared to undertake.

The concept of JETPs emerged from the COP26 conference in Glasgow in 2021, where wealthy nations aimed to support countries like South Africa in moving away from coal. Similar partnerships were formed with other nations, but India’s discussions never advanced to the same extent. Analysts suggested that India’s coal dependency, along with the economic implications of transitioning away from it, rendered a coal-centric JETP unsuitable.

Flasbarth highlighted that India’s skepticism about ownership over its transition plans was a significant factor in the partnership's collapse. This sentiment was echoed by Indian analysts who noted that while donor nations were eager to engage, India was cautious about entering into agreements that could lead to further loans.

Moving forward, India and its international partners are likely to explore cooperation in renewable energy financing instead. Flasbarth pointed out that India’s ambitious solar targets require more concerted efforts and that Germany is already facilitating discussions to attract investments in this area.

The halt of JETP talks is viewed by some as an opportunity to refocus on renewable energy strategies that align with India’s broader energy goals, rather than being tied to a potentially burdensome coal exit. Experts suggest that India could leverage this moment to develop a platform for attracting diverse investments in clean energy, aligning its transition with adaptation strategies and sustainable development goals.