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

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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