The new Strategic Energy Partnership between Canada and India is being advanced after Prime Minister Mark Carney’s visit to New Delhi. The partnership is being positioned as a possible paradigm for clean energy cooperation between North and South.
Underpinned by commercial agreements valued over 5.5 billion Canadian dollars, the cooperation encompasses LNG, LPG, uranium, solar, hydrogen, and essential minerals. In line with India’s multinational renewable energy ambitions, Canada has also pledged to join the International Solar Alliance and enhance its position in the Global Biofuels Alliance.
With a goal of 500 GW of non-fossil fuel capacity by 2030—requiring additions of 40-50 GW per year—India’s energy transition is extremely ambitious. With the use of a shared working structure, a distinct clean energy MoU details collaboration in the areas of solar, wind, bioenergy, small hydro, and storage.
Canada is establishing itself as a go-to source for uranium, vital minerals, low-carbon LNG, and system expansion/energy storage agreements. This deal shows that India is serious about using natural gas as a transition fuel and ramping up its use of renewable energy sources.
Nevertheless, experts warn that LNG contracts with lengthy durations could stretch into the 2040s, which could clash with India’s goal of reaching net-zero emissions by 2070 and the world’s efforts to reduce carbon emissions. Investments in next-generation clean technology, in addition to time limits on petrol usage, will determine the partnership’s success.
Positively, the cooperation goes beyond only trading goods and services; it also involves building ecosystems and forming research partnerships, like the one between Simon Fraser University and the Hydrogen Association of India, to promote innovation in hydrogen and energy storage.
Scaling investments in renewable infrastructure, grid expansion, and battery supply chains will determine the partnership’s influence moving forward. To back massive solar, wind, and storage projects in India, Canadian banks and investors will likely be pivotal.
The energy accord between India and Canada has the potential to be a watershed moment in international cooperation on sustainable energy if it is carried out as planned. To be credible in the long run, though, it must prioritise sustainable infrastructure above the growth of fossil fuels, and it must be in line with climate goals and energy security objectives.
