Australia-India Clean Energy Partnership

15 Oct 2025

Australia-India Clean Energy Partnership

Australia’s Climate and Energy Minister Chris Bowen is visiting India to reinforce the India–Australia Renewable Energy Partnership (REP)

  • The visit comes amid global supply chain vulnerabilities and both countries’ drive toward clean energy transition while reducing dependence on China in critical materials.

Need for Cooperation

  • Climate Vulnerabilities in the Indo-Pacific:
    • The region faces severe climate impacts — nearly 10 climate-related disasters a month (1970–2022), displacing millions.
    • By 2050, about 89 million people could be displaced, with 80% of the population directly affected.
  • Climate targets: Both Nations have set a ambitious target:
    • India: Targets 500 GW of non-fossil capacity by 2030 (280 GW from solar) and has achieved 50% of installed capacity from non-fossil sources by July 2025.
    • Australia: Aims to cut emissions 62–70% below 2005 levels by 2035, aligning with its net-zero trajectory.
  • Supply Chain Dependence on China:
    • China refines over 90% of rare earth elements and produces ~80% of global solar modules.
    • India faces import dependency for rare earth magnets and battery materials used in EVs and wind power.
    • Australia, despite its rich mineral base (lithium, cobalt, rare earths), lacks large-scale refining and manufacturing capacity.
    • This creates an opportunity for India–Australia collaboration to diversify global clean energy supply chains.

India–Australia Renewable Energy Partnership (REP)

  • Launch: REP was launched in November 2024 during the 2nd India–Australia Annual Summit held on the sidelines of the G20 in Rio de Janeiro.
  • Focus: Move from vision to implementation through practical cooperation.
  • Objectives:
    • Accelerate Energy Transition: Aligning both countries toward Net Zero commitments (India by 2070, Australia by 2050).
    • Promote Technology Sharing & R&D: Joint innovation in solar PV, battery storage, and hydrogen.
    • Facilitate Investment Flows: Enabling cross-border investments in renewable projects.
    • Strengthen Supply Chains: Secure and diversify solar and critical mineral supply chains.
    • Build Capacity & Skills: Human resource development, training, and knowledge exchange.
  • Priority Areas of Cooperation
    • Solar photovoltaic technology
    • Green hydrogen
    • Energy storage
    • Solar supply chains
    • Circular economy in renewables
    • Two-way investment
    • Capacity building
    • Track 1.5 Dialogue among policymakers, industry, and research institutions
  • Institutional Mechanism 
    • Nodal Ministries:
      • India – Ministry of New and Renewable Energy (MNRE)
      • Australia – Department of Climate Change, Energy, the Environment and Water (DCCEEW)
    • Governance:
      • A Ministerial-level Steering Committee headed by respective Energy Ministers.
      • A Track 1.5 Dialogue mechanism involving governments, industry, and research institutions to drive sectoral projects.

Complementary Strengths

Australia India
Rich reserves of lithium, cobalt, and rare earths Large-scale manufacturing base and young workforce
Expertise in sustainable mining and regulatory transparency Policy incentives via Production-Linked Incentive (PLI) schemes for solar, battery, and hydrogen sectors
Net Zero Jobs Plan creating a skilled clean-energy workforce Strong domestic demand enables scale for affordable green technologies

This complementarity transforms India and Australia from resource partners into co-developers of the global green economy.

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Significance of Cooperation

  • Energy Security: Diversifies supply chains, reducing over-reliance on any single source.
  • Strategic Autonomy: Enhances both nations’ control over critical mineral processing and clean technology manufacturing.
  • Green Indo-Pacific Vision: Positions both countries as leaders in creating a rules-based, low-carbon regional order.
  • Economic Gains: Encourages co-investment in refining, processing, and renewable infrastructure.
  • Geopolitical Symbolism: Reinforces the Quad’s sustainable development agenda, linking energy transition to strategic stability.

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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