India and the UK join hands to fight climate crisis

At the 11th India-UK Economic and Financial Dialogue (EFD), FM Shrimati Nirmala Sitharaman and UK Chancellor Shri Rishi Sunak signed a US$1.2 billion package for investment in green projects and renewable energy.

September 3, 2021

The programme also saw the formation of a new Climate Finance Leadership Initiative (CFLI) India partnership.

The UK welcomed India’s decision to reduce the Foreign Direct Investment (FDI) cap in the insurance sector from 49 per cent to 74 per cent.

The statement covered areas such as the financial services & opening of new opportunities for UK financial firms aiding Indian companies with financial access in London.

The India-UK Global Innovation Partnership under the Trilateral Development Cooperation Framework was welcomed by both the countries at EFD.

Aiming to further India’s green growth ambitions, US$1.2 billion package of public and private investment in green projects and renewable energy was signed by FM Shrimati Nirmala Sitharaman and UK Chancellor Shri Rishi Sunak, virtually, at the 11th India-UK Economic and Financial Dialogue (EFD). The package consists of a USD 1 billion investment from Colonial Development Corporation (CDC), the UK’s development finance institution in green projects in India, collaborative investments by both governments to support companies working on innovative green tech solutions and a new USD 200 million private and multilateral investment into the joint Green Growth Equity Fund investing in Indian renewable energy. The programme also saw the formation of a new Climate Finance Leadership Initiative (CFLI) India partnership to convert private capital into sustainable infrastructure i.e wind and solar power and other green technologies in India.

The EFD saw the UK welcome India’s decision to reduce the Foreign Direct Investment (FDI) cap in the insurance sector from 49 per cent to 74 per cent that would aid British firms in obtaining greater ownership of their operations in India. The ministers mutually agreed to raise their ambitions with regard to the services in the upcoming UK-India trade negotiations and augment the measures towards financial growth such as strengthening the financial market collaboration efforts. Efforts to double trade by 2030 were discussed, including the negotiation of a Free Trade Agreement (FTA) after an Enhanced Trade Partnership (ETP) between the countries was agreed upon earlier this year. The joint statement signed by both the ministers includes a plethora of areas such as the financial services and opening of new opportunities for UK financial firms aiding Indian companies with financial access in London. It also underlined the developments in the UK-India strategic partnership on GIFT City (Gujarat International Finance Tec-City), India’s first International Financial Services Centre (IFSC) that will encourage links between GIFT City and the UK financial services ecosystem.

The India-UK Global Innovation Partnership under the Trilateral Development Cooperation Framework to jointly finance a fund equally for 14 years which will aid the transfer and amp-up climate-smart inclusive innovations from India to other nations was welcomed by both governments. Highlighting the strong ties of both nations, Shri Sunak spoke about the common agreement to aim higher in terms of services that would create new opportunities in both markets, supporting jobs and investment in the UK and India.

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