The Climate Action and Finance Mobilisation Dialogue (CAFMD) is a partnership between the United States and India launched in 2021 to advance collaboration on fighting climate change. As a track of the U.S.-India Climate and Clean Energy Agenda 2030, CAFMD aims to mobilize climate finance and accelerate clean energy deployment while supporting sustainable and inclusive development.
Overview
CAFMD was announced at the 2021 Leaders Summit on Climate by U.S. Special Presidential Envoy for Climate John Kerry and India’s Minister for Environment, Forests and Climate Change, Bhupender Yadav. It succeeds the U.S.-India Strategic Clean Energy Partnership and focuses on attracting investment, fostering innovation, and building resilience to climate impacts.
CAFMD has three main pillars:
- Climate Action – Collaboration on emissions reductions
- Finance – Mobilizing capital and enabling renewable energy growth
- Adaptation and Resilience – Strengthening capacities to measure and manage climate risks
The dialogue acknowledges India’s climate actions as aligned with keeping global temperature rise below 2°C under the Paris Agreement, despite no commitment yet to a net zero emissions target.
Opportunities
CAFMD can support India in capitalizing on falling renewable energy costs and surging global investment. According to the International Energy Agency, India could soon lead worldwide markets for solar panels and batteries.
India aims for 450 GW of renewable capacity by 2030. CAFMD can catalyze progress through technology cooperation, trade, and channeling investment. Clean energy finance in India is recovering post-pandemic and may reach a new record of $8.4 billion in 2022.
Criticisms
Critics argue CAFMD lacks accountability mechanisms and interim emissions goals. There are also calls for more emphasis on supporting vulnerable communities in climate adaptation and energy access programs.
Others question the focus on expanding India’s coal power, which could undermine climate objectives. More clarity is needed on how new coal plants align with Paris Agreement obligations.
Impact
Early initiatives launched under CAFMD include:
- A new U.S.-India Task Force on biofuels development
- An IFC investment platform for grid integration and storage
- USAID partnerships on clean cooling access
While substantive outcomes remain to be seen, the dialogue sets a foundation to advance India’s renewable energy goals and cooperation preparing communities for intensifying climate impacts in the coming decades. Continued high-level commitments along with private sector collaboration will be essential to realize CAFMD’s full potential.
