US industry associations, such as the Renewable Fuels Association, have been advocating for a greater role of renewable fuels in the US. Increased usage of renewable fuels such as ethanol could enhance the US energy security and reduce gas prices. The high gas prices and rising inflation were a significant issue in the recent US elections. Increased ethanol usage could also support the farm economy, which is an important Trump base.
Our industry associations, such as the Confederation of Biomass Energy Industry of India (CBEII) and the Clean Energy Access Network, could join hands with the US Renewable Fuels Association and Clean Fuels Alliance America to promote renewable fuels in India and the US, collaborating under the larger umbrella of the Global Biofuel Alliance. They could also conduct advocacy for on-boarding the European Union (EU) to the Global Biofuel Alliance.
Both India and the US have concerns on the EU’s Carbon Border Adjustment Mechanism (CBAM). Under the new Trump administration, India and the US could adopt a collaborative approach with EU on CBAM to minimise the impact on trade. Essentially, India and the US could suggest to EU to keep the conversations on trade and sustainability separate, and let them not affect the competitiveness of goods from India and the US.
Commercial reasons
However, more than climate change commitments, the commercial considerations shall encourage the new Trump administration towards renewables adoption. Renewables present a significant opportunity for the US to outcompete China. The US needs to be consistently ahead (of China) in technology and innovation. This need has, inter alia, led to a technology denial strategy for China, which the current US NSA Jake Sullivan has described as a “small yard, high fence” approach, controlling a small group of strategic technologies.
The policy of US trade and technology restrictions aimed at China commenced under the then-President Trump in 2018. He is likely to continue this trade and technology restrictions policy, and has already indicated that he may impose high tariffs, up to 60 pc, on China.
While the strategic technologies which the US intends to deny to China are traditionally in AI, defence, space and dual-use applications such as semi-conductors, the renewable technologies are equally important and are moving into strategic technologies space.
EV technology edge
Electric Vehicles (EV) technology, where China has taken a lead, shall witness considerable efforts by the US to regain the edge, driven by commercial considerations of the EV market. There shall be renewed US investments in EV technology. Elon Musk, the CEO of Tesla Motors, and close to Mr Trump, is expected to play a positive role. He is a major proponent of shifting to low-emissions technologies.
Last year, US scientists successfully produced a fusion reaction that creates more energy than it consumes. It is being considered a step toward zero-carbon nuclear fusion energy, besides being a strategic technology. Many other major innovations such transparent solar panels, Perovskite Solar Cells, Hydrothermal liquefaction (HTL), etc. are all happening in the renewable space.
These technological forces, the India-US strategic alignments, our partnership in the US-India Initiative on Critical and Emerging Technology (iCET), and our convergences under the Global Biofuel Alliance and the International Solar Alliance, present India and US with multiple, win-win opportunities to collaborate on the renewables under the new Trump administration.
