News Excerpt:
Cooperation on climate change and clean energy technologies is fast emerging as one of the key pillars of an upgraded economic partnership between India and Australia.
About the news:
- The ongoing negotiations of the Comprehensive Economic Cooperation Agreement (CECA) between India and Australia prominently feature components related to clean energy technologies.
- Australia’s PM identifies critical areas such as Solar Energy, Solar Supply Chains, and Green Hydrogen as focal points for future collaboration.
- Australia acknowledges the imperative of enhancing global climate finance flows and has committed to increasing its share from US$ 2 billion to US$ 3 billion.
- At the upcoming climate change conference, stakeholders aim to establish a New Collective Quantitative Goal (NCQG) for climate finance. It will try to surpass the US$ 100 billion benchmark, already promised by the developed countries.
- It signifies the commitment to mobilize resources for climate action in developing countries.
- Australia recognizes the importance of both public and private sector contributions in augmenting climate finance.
- While official development assistance remains crucial, leveraging private sector investments is also essential for meeting climate financing needs.
Background of Australia-India CECA:
- Australia and India first launched negotiations for a Comprehensive Economic Cooperation Agreement in May 2011 and suspended them in 2016 after nine rounds of negotiations.
- In September 2021, Australia and India formally re-launched CECA negotiations to quickly conclude an Economic Cooperation and Trade Agreement (ECTA) to swiftly liberalize and deepen bilateral trade in goods and services, and then use this foundation to resume negotiations on the more ambitious CECA.
- ECTA was signed on 2 April 2022 and entered into force on 29 December 2022.
- Negotiations have now resumed for an ambitious Comprehensive Economic Cooperation Agreement (CECA), which will build upon ECTA outcomes to capitalize on the potential for closer economic ties between Australia and India.
- The proposed CECA falls within the strategic necessity of both countries.
