The Prime Minister of India, Narendra Modi, and the Chancellor of the Federal Republic of Germany, Angela Merkel, emphasized that tackling the issue of climate change is of vital importance for sustainable future. India and Germany recognize that renewable energy and the efficient use of energy are most effective approaches to mitigating greenhouse gas emissions in both countries.
The two leaders had earlier visited the Bengaluru plant of German automotive major Bosch, where they interacted with its executives on innovation and research to help the government promote 'Make in India' and 'Digital India'. After three-hour talks and signing 18 deals, PM Modi had, on Monday, said, "We see Germany as a natural partner in achieving our vision of India's economic transformation. German strengths and India's priorities are aligned."
Germany welcomes India's intention to transform its energy sector by increasing the share of renewable energy, in particular solar energy, in electricity generation consistent with its goal of 175 gigawatts of renewable energy by 2022. Germany also welcomes India's aim to consistently increase efficiency gains in the use of electricity by 2030. The two countries signed deals worth $2.25 billion (around Rs. 14,600 crore) on German investment in developing India's clean energy corridors and solar energy industry, ahead of the crucial UN climate change talks to be held in Paris in December.
An Alliance for the Environment India and Germany acknowledge that climate change responses and solutions generate new opportunities and co-benefits by creating jobs, spurring economic development and improving air quality. Both countries will intensify their ongoing cooperation on climate and renewables technology under the new Indo-German Climate and Renewables Alliance,the 7 Focus areas under the Indo-German Climate and Renewables Alliance:
- Next generation solar technology
- Renewable energy storage
- Climate-friendly space cooling technologies
- Super-efficient appliances and buildings
- Zero emission passenger and freight vehicles
- Energy-efficient rail and water infrastructure
- Off shore wind
“Very pleased after discussions with chancellor Merkel, taking forward clean energy drive” Modi expressed in social media.
Germany welcomes India's submission of its intended nationally determined contribution to the Paris Agreement. India appreciates Germany's ambitious mitigation efforts, including its goal to have at least 80% of electricity consumption from renewable sources by 2050 compared to 27% today.
Narendra Modi further recalled his visit to the city of Hannover and Hannover Messe in April. Where 15 States, a number of CEOs and hundreds of companies from India, had participated. The exposure to Hannover Messe will go a long way in shaping the vision and strategy of manufacturing. This is particularly important at a time when we are on the path of making India a global manufacturing hub.
There is tremendous potential in India-Germany economic collaboration. Germany ranks 7th among foreign investor countries in India. About 600 Indo-German Joint ventures are already operating in India. However, as of now, our economic partnership remains below our full potential. We are particularly keen to develop the sectors where Germany is strong. We are working hard to create conducive conditions for the same.
“The Business Forum organised by Nasscom & Frauenhofer Institute illustrated the strong potential in India-Germany economic collaboration,” Modi said.
Modi further added on the investment that “at a time of global slowdown, India represents a bright spot for investments. We are fortunate to be sailing in the right direction. The recent data on global economic activity reinforces this assertion. However, we cannot afford to be complacent. We are committed to doing everything possible to convert these analyses into reality.”
One of the biggest challenges in India today is to productively employ youth. For meeting this challenge, need a huge push to manufacturing which has stagnated at around 16% of the GDP for several decades in India. This percentage must reach around 25 in the short and medium term. With this in view, “we have launched the “Make in India” initiative” said Narendra Modi.
‘I spoke at length on how India has emerged as a bright spot for investments, even at a time of a global slowdown’ Modi tweeted
Domestic financial resources are not sufficient to meet our needs. Therefore, to enhance the flow of foreign investments, the FDI regime have liberalized allowing 100% FDI in railways and enhancing the FDI limit to 49% in Defence and Insurance. Modi added “We have also refined our FDI Policy for construction and medical devices. We have rationalized a number of other FDI related policy issues including bringing in the concept of composite sector caps for the FPIs and other investors.”
Modi further added that “We are keen to build futuristic physical and social infrastructure. Through self-imposed discipline in the management of our financial resources, we have been able to allocate more resources for infrastructure sectors. In addition, we are setting up an India Investment and Infrastructure Fund. We have targeted an annual flow of Rs 20,000 Crore (which is approximately 2.7 billion euros) into this fund from our own resources. We are putting in place a professional team for asset management.”
Germany invest $1bn Eur for solar energy for India fast-tracking business
“We have agreed on India — German Climate and Renewable Alliance with a long term vision and a comprehensive agenda of cooperation.I place great value on Germany’s assistance of over one billion Euros for India’s Green Energy Corridor and a new assistance package of over a billion Euros for solar projects in India,” Prime Minister Modi said.
India and Germany underline the importance of climate finance and emphasize the commitment by developed countries to jointly mobilize USD 100 billion from public and private sources per year by 2020 to developing countries. Climate finance will also play a key role beyond 2020 and will be an important part of the 2015 agreement. Climate finance will be enhanced to support ambitious, transformative mitigation actions in developing countries as well as their adaptation efforts, focusing in particular on the poorest and most vulnerable countries.
“Discussed cooperation in clean & renewable energy. Climate change is worrying. Temperature rise can be contained by change in temperament,” Modi tweeted.
India and Germany recognize that science, technology and innovation play a crucial role for the development of affordable, accessible and adaptable solutions in the areas of low carbon development, renewable energy generation and climate protection. Especially solar energy research, development, manufacturing and deployment has great potential to increase energy access, foster economic development and reduce greenhouse gas emissions.
Germany is prepared to further support India in its efforts to deploy renewable, in particular solar, energy technologies and to create attractive framework conditions [e.g. through the Indo-German Energy Forum, Indo-German Solar Partnership, IGEN]