India, U.S. to Sign Energy Pact, CDM Targeted

March 14, 2000--The Hindu reports that U.S. and India are working out the final details of an agreement to develop cooperative projects on energy and the environment.

The agreement would create an institutional structure for energy research and development projects, particularly clean energy production. It is also expected to allow for broader consultation between the two countries on environmental issues.

Questions of how to deal with environmental threats, particularly global warming, have resulted in contentious debates between India and the United States. Recently, however, there has been a growing consensus that both sides can gain from a framework for future cooperation. Clean energy investments that reduce greenhouse gases in developing countries can yield emission credits that the U.S. and other industrialized countries can use to meet obligations under the Kyoto Protocol. This crediting system is known as the Clean Development Mechanism (CDM). Meanwhile, India is looking to the U.S. for clean energy technology that will both improve its environment and maintain economic growth.

President Clinton is scheduled to sign the pact during his March visit to India.