India-Australia Renewable Energy Partnership Boosts Clean Transition

The India-Australia Renewable Energy Partnership (REP) has gained fresh momentum in 2025. This follows the visit of Australia’s Minister for Climate Change and Energy, Chris Bowen, to Delhi. Both nations face the urgent task of scaling up renewable energy while reducing dependence on China’s dominance in critical materials. REP aims to transform climate ambitions into practical, resilient clean energy outcomes.

Climate Vulnerability in the Indo-Pacific

The Indo-Pacific faces severe climate risks. Since 1970, it has averaged nearly ten climate disasters monthly. These have caused thousands of deaths and huge economic losses. By 2050, 89 million people could be displaced. India and Australia are among the most affected and thus prioritise clean energy to mitigate impacts.

India’s Renewable Energy Progress

India targets 500 GW of non-fossil electricity capacity by 2030. Solar energy is expected to contribute 280 GW. Remarkably, India is five years ahead in meeting this goal. By mid-2025, half of India’s electricity capacity is from non-fossil sources. This rapid growth supports India’s climate commitments and energy security.

Australia’s Emission Reduction Ambition

Australia aims to cut emissions by 62-70% below 2005 levels by 2035. This target aligns with its net-zero goals. The government views it as ambitious yet achievable and financially viable. Australia’s strategy includes expanding renewable energy and investing in green technologies.

Critical Minerals and Supply Chain Risks

China dominates rare earth element refining and solar module production. It controls over 90% and 80% respectively. This creates supply risks for other countries. India depends on imports for electric mobility and wind power sectors. Australia, rich in lithium and cobalt, lacks downstream processing capacity. Past disruptions, like export restrictions and pandemic shortages, exposed vulnerabilities.

India-Australia Partnership Focus Areas

The REP covers eight cooperation areas – solar photovoltaic technology, green hydrogen, energy storage, solar supply chains, circular economy in renewables, two-way investment, capacity building, and shared priorities. A Track 1.5 Dialogue encourages collaboration among policymakers, industry, and researchers.

Complementary Strengths of India and Australia

Australia offers vast mineral resources and stable regulations. Its Net Zero Jobs Plan emphasises workforce skills for clean energy. India brings a large young population and growing market demand. Its production-linked incentive schemes attract investment. Together, they can build refining capacity and manufacturing ecosystems that reduce supply chain risks.

Strategic Importance of REP

The partnership aims to reduce overreliance on China. It promotes supply chain diversification and resilience. Joint projects can create a regional clean energy hub. This cooperation is vital for two democracies facing common climate threats and economic challenges.

Questions for UPSC:

1. Point out the challenges and opportunities in reducing global dependence on China for critical minerals in renewable energy supply chains.
2. Critically analyse the role of demographic dividend in India’s clean energy transition and its impact on regional energy security.
3. Estimate the economic and social impacts of climate-induced displacement in the Indo-Pacific region and suggest mitigation strategies.
4. Underline the significance of international partnerships like the India-Australia Renewable Energy Partnership in achieving global climate goals, with suitable examples.

Answer Hints:

1. Point out the challenges and opportunities in reducing global dependence on China for critical minerals in renewable energy supply chains.

1. China controls over 90% of rare earth refining and nearly 80% of solar module production, creating supply risks.
2. Dependence causes vulnerabilities, as seen in export restrictions and COVID-19 supply chain disruptions.
3. Challenges include lack of refining capacity outside China and overconcentration of manufacturing.
4. Opportunities lie in diversifying supply chains through partnerships like India-Australia REP.
5. Co-investing in refining and downstream manufacturing can build resilience and reduce risks.
6. Developing local capacities and circular economy approaches can further reduce dependence.

2. Critically analyse the role of demographic dividend in India’s clean energy transition and its impact on regional energy security.

1. India has nearly two-thirds population under 35, offering a large skilled workforce potential.
2. Demographic dividend can drive manufacturing, installation, and maintenance in clean energy sectors.
3. Programs like Skill India enhance workforce readiness for renewable energy jobs.
4. Growing domestic demand and production-linked incentives attract investments and boost capacity.
5. This workforce advantage supports regional energy security by enabling local production and reducing imports.
6. Challenges include ensuring quality training and job creation to fully harness demographic potential.

3. Estimate the economic and social impacts of climate-induced displacement in the Indo-Pacific region and suggest mitigation strategies.

1. Indo-Pacific averages 10 climate disasters monthly, causing thousands of deaths and billions in economic losses.
2. By 2050, up to 89 million people could be displaced, affecting 80% of the region’s population.
3. Displacement leads to social instability, loss of livelihoods, and increased poverty.
4. Economic impacts include infrastructure damage, reduced productivity, and increased disaster recovery costs.
5. Mitigation strategies – scaling renewable energy, climate-resilient infrastructure, regional cooperation.
6. Investing in clean energy reduces emissions and vulnerability, while social safety nets support displaced populations.

4. Underline the significance of international partnerships like the India-Australia Renewable Energy Partnership in achieving global climate goals, with suitable examples.

1. Partnerships reduce overreliance on single countries, enhancing supply chain resilience.
2. India-Australia REP focuses on solar tech, green hydrogen, energy storage, and critical mineral cooperation.
3. Combines Australia’s resource base and regulatory stability with India’s market scale and workforce.
4. Joint projects and capacity building translate climate ambitions into practical outcomes.
5. Track 1.5 Dialogue encourages collaboration among policymakers, industry, and researchers.
6. Such partnerships demonstrate how democracies can lead regional clean energy transitions and meet net-zero goals.