Germany Announces Additional EUR 1.2 bn in Development Cooperation to India

At the ongoing bilateral government negotiations 2021 during the visit of the delegation of the German Ministry of Economic Cooperation and Development, the Federal Republic of Germany has announced new commitments to the tune of more than EUR 1.2 billion (approx. INR 10,025 crore)

In a briefing held at the German Embassy, Ambassador Walter Lindner said,

“You know, every fifth person on this planet is Indian. Without Indians you cannot solve any big world problems, and one of the biggest is climate change. We try to work together with India and help with climate change, renewable energy and similar projects, which also helps in working towards our own goals we promised at COP26 in Glasgow. All this is important and one can only do this together with India. While we try to support India, we fulfill our own goals promised in Glasgow. Here, we assist India in a range of projects across the country that is huge in dimension. I travel a lot through this country and everywhere I go find different projects that the two countries are working together and learning from.”

Professor Dr. Claudia Warning, Director General from the German Ministry for Economic Cooperation and Development said,

“India is the biggest development cooperation partner for Germany. This cooperation of 63 years is based on a strong foundation of shared values and vision. Both countries have borne the brunt of climate change. More than 180 people lost their lives in Germany in July; 170 people died in Cyclone Tauktae in Western India. The Indo-German cooperation is resting on four key megatrends: • Climate Change • Urbanization • Degradation of natural resources • Pressure on democracy and society. Germany wants to strengthen this partnership even further and hence it remains committed to its friendship to the people of India.”

Overview of co-operation between India and Germany and relation to Paris Climate Agreement

Climate change is real (COP26)

  • More than 180 people lost their lives in Germany in July; 170 people died in Cyclone Tauktae in Western In
  • dia; Intergovernmental Panel on Climate Change (IPCC): India and Germany will suffer more extreme events due to climate change.
  • India and Germany account together for nearly 9 percent of global greenhouse gas (GHG), strict policy of climate neutrality only way forward.
  • Like India also Germany raised its climate ambition, targeting to reach climate neutrality by 2045 and emissions reductions in the energy and industry sectors by 77 and 58 percent compared to 1990.
  • At COP26, India and Germany agreed to phase down unabated coal power. Germany will exit coal by 2038, possibly much earlier. And India has just joined a multilateral Coal Transition Programme funded by the Climate Investments Funds and supported by Germany. Very concretely, India has already identified 50 gigawatts (GW) of coal plants for retirement by 2027.

It depends on India

  • India and Germany work together as key partners to achieve solutions for global challenges
  • Objectives of Paris Agreement and Sustainable Development Goals can only be achieved jointly
  • India is the third biggest producer of C02 emissions in the world
  • Increasing demand in energy supply, housing, infrastructure and mobility in a rapidly growing economy calls for technical innovations and swift action in order to reach all people, including the poorest, and to reach climate neutrality
  • India is already feeling the serious repercussions of climate change in the form of droughts, floods, rising sea levels, melting glaciers 

Consequently, Germany is already working together with India in these focal areas (Ongoing Commitments as of 01/2021):

  • Energy (€ 5.08 bn)
  • Sustainable Urban Development (€ 3.16 bn) 
  • Management of Natural Resources and Agriculture (€ 435 m)
  • Other activities, particularly vocational training, health and social protection (€ 568 m)

New commitments made in bilateral government negotiations 2021, in addition to the ones mentioned above: more than € 1.3 bn! (€ 713 m. for energy, € 409 m. for urban development, € 90 m. for agroecology and natural resources)

In a nutshell:

Almost the entire Indo-German Cooperation Portfolio addresses climate change as a principal or significant objective while at the same time focuses on the economic and social development of all Indians.

  • Consequently, almost all our activities are contributing to the achievement of the Paris Agreement (Mitigation of greenhouse gas emissions and/or adaptation to climate change)
  •  Germany is supporting Indian renewable energy (RE) initiatives: it has joined the International Solar Alliance (ISA) and is supporting One Sun One World One Grid (OSOWG).
  • ðGermany has also joined the Coalition for Disaster Resilient Infrastructure (CDRI) that has been launched by India at the 2019 UN Climate Action Summit.

Selected lighthouse programs:

Solar Partnership:

Support India’s targets to expand solar power generation and to mitigate climate change with respect to solar parks, solar rooftops and solar off-grid solutions. Germany’s support 2015 – 2020: more than 1 bn euros in loans and technical assistance. 

Green Energy Corridors

More than 1 bn Euros for Inter and Intra state transmission lines in 7 states to facilitate evacuation of renewable energy. Technical assistance is given for forecasting, market design and the establishment of Renewable Energy Management Centers (REMC). Next big options for support could be Leh-Haryana Transmission Line for Solar Electricity, other green corridors within India and to neighbouring states like Bangladesh and Nepal.

Green Urban Mobility:

In 2019 Germany and India launched the Green Urban Mobility Partnership (GUMP) with 1 bn euros additional commitment for sustainable mobility solutions.

Co-financing of Metro Nagpur (38 km, two thirds of electricity needed for trains come from solar power) with 500 m euros promotional loan and of Metro Mumbai line 4 (34 km) with 545 m euros concessional and promotional loans, including improved access to footpaths and bicycle lanes.

Modern ferry system in Kochi as part of an integrated public transport system (run by Kochi Metro) – including introducing cleaner and energy-efficient electric-hybrid boats and constructing 38 jetties/terminals served by 16 new routes on a network of 76km connecting up to 10 islands.

Lighthouse Cooperation on Agro-Ecology and Natural Resource Management

Sustainable Management of forest ecosystems, climate smart agriculture, setting up of a state-of- the art Indo-German Global Knowledge and Research Center for Agroecology in Andhra Pradesh and supporting the “Community Managed Natural Farming” approach (non-chemical agriculture based on regenerative principles).