INDIA - NORDIC GREEN ENERGY TRANSITION – ENVIRONMENT

News: A Nordic-India connect to power a green transition

 

What's in the news?

       Over the last decades, Nordic countries have been pioneering green technologies.

       Together, the Nordics and India can power the green transition the world needs.

 

Importance of Nordic Countries:

       Over the last decades, Nordic countries have been at the forefront of developing new green technologies and solutions such as hydrogen, offshore wind, and carbon capture and storage.

       The Nordics have succeeded in building stable, secure, welfare based societies to a large extent.

       The Nordic region has ambitions to become the most sustainable and integrated region in the world by 2030.

 

Paths of India and Nordic Countries Relations:

1. Nordic India Summit:

       The Nordic ­India Summit was held in Copenhagen in May 2022.

       The five Nordic leaders and Indian Prime Minister agreed to intensify cooperation on digitalisation, renewable energy, maritime industries, and the circular economy.

       The Nordic business community in India is also growing. There are now 240 Norwegian and Finnish companies in India.

2. India and Finland:

       The past years has seen a significant rise in trade and investments between Finland and India.

       India has grown to become a priority country for Finland. Finland has recently opened a new Consulate General in Mumbai.

       Several Indian companies are looking towards Finland for its expertise in areas of technology and innovation, sustainability, digitalisation, carbon neutrality and more.

       An increasing number of Indian students, researchers, and experts have been moving to Finland as well. Finnish companies such as Nokia and Fortum have some of their most significant investments in India.

3. India and Norway:

       Trade between Norway and India has doubled in the last three years.

       The Norwegian Sovereign Wealth Fund is likely to become one of India’s largest single foreign investors with around $17.6 Billion investment.

       The Norwegian government has also recently established a new Climate Investment Fund for investments in renewables abroad, and India has been defined as a focus country.

       Almost ₹1,500 crore have been invested so far in India through the climate investment fund.

       As members of the UN Security Council, India and Norway have been engaging with each other in the UN on global issues of mutual interest.

4. India and Sweden:

       India and Sweden formed a joint global initiative to set up a Leadership Group on Industry Transition (LeadIT) in September 2019 at the UN Climate Action Summit to help guide the world’s heaviest greenhouse gas emitting industries towards the low-carbon economy whose membership has now grown to 35, with 16 countries and 19 companies.

5. India and Iceland:

       With Iceland, strengthening of economic cooperation especially in the sectors of geothermal energy, Blue Economy, Arctic, renewable energy, fisheries, food processing, education including digital universities, and culture.

       They discussed opportunities to expand cooperation in the fields of new and emerging technologies like AI, quantum computing, future mobile technologies, clean technologies and smart grids with Finland.

 

Projects under India-Nordic Relations:

1. Sagarmala project:

       India invited Nordic companies to invest in the Blue Economy sector, especially in India’s Sagarmala project.

2. Sovereign wealth funds of the Nordic countries were invited to invest in India.

3. Lead IT initiative:

       An India-Sweden move to set up a Leadership Group on Industry Transition to guide the world’s heaviest greenhouse gas emitting industries.

       Its membership has now grown to 16 countries and 19 companies.

4. Health sector:

       Both sides discussed cooperation relating to joint research in vaccines and the development of health infrastructure.

5. Water bodies:

       The two leaders also talked about the cooperation in building and restoring water bodies in India.

6. Green Energy:

       The PM of India expressed an interest in joint Nordic solutions that can support India’s green transition.

 

Significance of the relations:

       India’s Arctic Policy provides a good framework for expansion of India-Nordic cooperation in the Arctic region.

       United Nation Security Council: The Nordic countries reiterated their support for India’s permanent membership of a reformed and expanded United Nation Security Council.

       India agreed to work together to fight and address climate change and to protect the natural environment.

       They reiterated their commitment to ambitious cooperation on renewable energy, energy diversification, smart grids and energy efficiency.

       The blue economy can deliver economic growth, new jobs, improved nutrition and increased food security.

       A strong partnership between India and Nordic countries can help promote innovation, economic growth, climate friendly solutions and mutually beneficial trade and investments.

       India's trade with Nordic countries stands at over USD 5 billion (2020-21) and a cumulative FDI of over USD 3 billion.

       Both sides are looking forward to reform the UN, including the Security Council, and the World Trade Organisation (WTO), as well as strengthening collaboration on global health issues such as pandemic preparedness.

 

WAY FORWARD:

       There is a great deal of complementarities in trade relations as exchange in goods is of a different nature and trade in services is an area of significant potential, especially with tourism, education, IT, energy, maritime and financial services.

       Technologies and innovations that are successful and are scaled-up in India can easily be transferred to other parts of the world, thus together, the Nordics and India can be the powerhouse of the green transition globally.

 

Go back to basics:

Nordic countries:

       The Nordic countries are a geographical and cultural region in Northern Europe and the North Atlantic.

       It includes the sovereign states of Denmark, Finland, Iceland, Norway and Sweden; the autonomous territories of the Faroe Islands and Greenland; and the autonomous region of Åland.

       The Nordic countries have much in common in their way of life, history, religion and social structure.

       The Nordic countries cluster near the top in numerous metrics of national performance, including education, economic competitiveness, civil liberties, quality of life and human development.