India-U.S. Sign a Joint Statement on
Cooperation in Energy and Environment

Minister of External Affairs Jaswant Singh and U.S. Secre-
tary of State Madeleine Albright signed a joint statement
on cooperation on energy and environment issues on
behalf of the India and the United States on March 22,
2000 in Agra. The statement outlines a common agenda
on clean energy development and environmental protec-
tion, including:

— Two ambitious national Indian environmental goals:

— 10% of new electric power will come from renewable
energy sources by 2012;

— and approximately 15% improvements in energy effi-
ciency in power production will be made by 2007-08.

Creation of a binational ‘Joint Consultative Group’ on
Clean Energy and the Environment that will focus on
clean energy projects and policy, commercial develop-
ment of clean energy, and, enhanced cooperation on
global climate change;

Promotion of a shared vision that countries can achieve
robust economic growth while protecting the environment
and taking action to combat climate change;

A reaffirmation of the urgent need for international dia-
logue on ways both developed and developing countries
can participate in actions to combat climate change, con-
sistent with treaty obligations under the Framework Con-
vention on Climate Change;

Agreement to work in closer partnership on the further
elaboration of mechanisms under the Kyoto Protocol, such
as the Clean Development Mechanism; and acknow-
ledgement of the essential role of the private sector and
reference to new initiatives.

South Asia Regional Initiative (SARI) Energy Program:
The SARI Energy Program is a new $50 million USAID
program designed to accelerate investment and trade in
clean energy among South Asian nations, including India,
Bangladesh and Nepal, which the President announced in
Bangladesh on Monday. Program support will help coun-
tries foster regional cooperation and develop the appro-
priate policy, regulatory, and investment environments to
encourage private investment. The program will promote
the use of clean energy technologies to reduce greenhouse
gas emissions and help stimulate economic growth.

U.S. Export-Import Bank Line of Credit: The Ex-Im Bank
will provide a $200 million specialized line of credit tar-
geted for clean energy development projects through a
Memorandum of Understanding with the Indian Power
Finance Corporation.

Clean Energy Trade Mission: To further the goals of
President Clinton’s International Clean Energy initiative,

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the Department of Commerce will lead a trade mission to
India focused on clean energy projects by the end of the
year.

Greenhouse Gas Pollution Prevention Project (GEP):
USAID will provide $20 million for a three-year extension
of this program to help reduce greenhouse gas emissions
through energy efficiency and cleaner fuel use. GEP will:

e expand the efforts of India’s National Thermal Power
Corporation to increase efficiency in its power genera-
tion plants;

e help increase use of clean energy technology in power
production;

e build local institutional capacity, and increase public/
private partnerships for climate change abatement
efforts; and

e design and demonstrate climate change abatement
initiatives in cities.

Energy Conservation and Commercialization (ECO)
Project: USAID will provide $25 million for ECO, a program
to help promote commercialization of energy efficient
technologies and services. ECO will provide technical
assistance and training to the Ministry of Power, electric
utilities, and regulatory commissions on policy reforms
and will work to address market constraints to greater use
of energy efficiency products and services.

Resumption of Bilateral Energy Consultations and Tech-
nical Assistance: Dept. of Energy will resume its coopera-
tive efforts on non-nuclear power sector policy reforms,
and on public and private collaborative projects related to
clean energy, renewable energy and energy efficiency.
DOE programs were suspended in 1998 in the context of
policy-based restrictions on U.S. assistance to India.

Resumption of EPA Technical Assistance: EPA will re-
establish its environmental cooperation program in India
with proposals to address air quality management,
strengthening implementation of environmental policies
and regulations, risk assessment and management of pri-
ority pollutants, and greenhouse gas reduction projects.
EPA programs were suspended in 1998 in the context of
policy-based restrictions on U.S. assistance to India.

Joint Private Sector Statement: The Confederation on
Indian Industry and the U.S. Energy Association announced
a joint statement to cooperate on trade and investment for
clean energy development in India. The parties announced
creation of a new ‘green business center’ in Hyderabad
and a ‘matchmaker’ initiative to help bring investors in
contact with business/project opportunities.

INDIA NEWS « April 2000 7