Sustainability and Green Energy Diplomacy: India–Australia Renewable Energy Partnership

“In the age of climate urgency, diplomacy is no longer defined by borders, but by shared commitments to a cleaner planet.”

The Strategic Imperative for Green Alliance
The global climate crisis and the urgent need for a clean energy transition have reshaped the foundations of international diplomacy. In this new paradigm, strategic alliances are increasingly forged not just by security concerns, but by shared commitments to sustainability and energy security.

In an era where climate change poses one of humanity’s most pressing challenges, the global shift toward sustainability and green energy solutions is not just a necessity but an urgent imperative. Green energy diplomacy, the art of leveraging renewable energy initiatives to foster international cooperation, has emerged as a critical instrument.

Green Energy Diplomacy represents a modern convergence of foreign policy, economic security and climate action. It moves beyond traditional environmental negotiations to actively build resilient, decarbonised economies through bilateral cooperation. In the Indo-Pacific, no partnership exemplifies this shift more profoundly than the escalating alliance between India and Australia

The India-Australia Economic Cooperation and Trade Agreement (ECTA), enacted in December 2022, have emerged as the pivotal catalyst. This agreement is transforming a complementary bilateral relationship into a strategic "Green Energy Partnership," built on three interdependent pillars: trade in solar photovoltaic (PV) technology, collaboration on critical minerals and strengthened bilateral innovation. This trinity of cooperation is positioning the two nations to enhance supply chain resilience, accelerate their respective energy transitions, and foster a more stable and sustainable Indo-Pacific region.

The Imperative of Green Energy Diplomacy

For both India and Australia, the shift to green energy is a matter of national security and economic prosperity. At the heart of this shift lies the burgeoning partnership between India and Australia, the two democratic powers in the Indo-Pacific. India, with its ambitious target of achieving 500 GW of non-fossil energy capacity by 2030, presents a colossal demand market for clean energy technology and investment, thus achieve net-zero emissions by 2070, requires transformative technological and material partnerships.

The Green Energy Diplomacy framework is centred on technology transfer, supply chain resilience and capacity building for the technologies of the future: Solar PV, Green hydrogen and Energy storage.

The Economic Engine of Cooperation (ECTA) as a Catalyst for Green Collaboration

The Economic Cooperation and Trade Agreement (ECTA) 2022 between India and Australia serve as the primary economic enabler for the Renewable Energy Partnership (REP). ECTA provides the institutional momentum needed to convert strategic intent into commercial viability. Crucially, ECTA includes provisions that reduce tariffs and remove non-tariff barriers on goods essential for the green transition, including clean energy commodities, equipment and critical minerals.

Furthermore, ECTA is seen as a stepping stone towards a more Comprehensive Economic Cooperation Agreement (CECA), which is expected to deepen economic ties further, especially in high-tech and services sectors critical for the smooth operation and maintenance of a modern green grid. ECTA, therefore, is not merely a trade deal; it is a strategic tool for fast-tracking shared climate and energy security objectives.

The on-going discussions for a subsequent Comprehensive Economic Cooperation Agreement are aimed at further deepening this economic integration, particularly by addressing non-tariff barriers and streamlining investment procedures, thereby maximising the synergies between India's 'Make in India' and Australia's 'Future Made in Australia' initiatives.

Solar Photovoltaic (PV) Collaboration: Harnessing the Power of the Sun, Technology Commercialisation and Workforce Development

Solar Photovoltaic (PV) technology stands as a central pillar of the REP, reflecting India’s ambitious targets for solar deployment, thus standing out among the world’s top solar markets

Australia, with world-leading expertise, is a global leader in solar research and innovation, thus boasting some of the most efficient solar PV technologies. Joint efforts between India and Australia have focused on technology transfer, setting up pilot projects and facilitating investments in solar manufacturing, which moves beyond simple trade to focus on “end-to-end supply chain integration and cutting-edge research” thus exploring opportunities in next-generation solar cells, battery storage and grid integration, which will help to meet domestic energy demands but also contribute to the global solar supply chain. Furthermore, a critical component is skills and knowledge exchange, sharing expertise in renewable energy policy, project financing and grid management to build human capital in both nations.

The Foundation of the Clean Tech Ecosystem

If solar PV represents the present collaboration, critical minerals are the strategic bedrock for the future. This pillar forms the geostrategic heart of the partnership. Australia possesses some of the world’s largest and most sustainably managed reserves of lithium, cobalt, rare earth elements and vanadium, which are the essential building blocks for electric vehicle batteries, wind turbines and grid-scale storage systems. India’s ambitious plans for domestic EV manufacturing and renewable expansion create an insatiable demand for these resources.

A specific and high-potential sub-focus is green hydrogen. Australia aims to be a top exporter, while India has launched an ambitious National Green Hydrogen Mission to become a global production hub. The collaboration here spans developing mutual standards, piloting projects in hard-to-abate sectors like steel and shipping and exploring the logistics of a future hydrogen trade corridor.

Strengthening Bilateral Collaboration: Opportunities and Challenges

The India–Australia renewable energy partnership has made notable strides, with several joint initiatives. Policy frameworks such as the India-Australia Energy Dialogue and institutional mechanisms like the Australia-India Critical Minerals Investment Partnership have provided a structured approach to cooperation. However, challenges remain. Regulatory differences, intellectual property rights and technology transfer issues can impede progress. Both countries must work to harmonise standards, streamline approval processes and ensure greater trust among stakeholders. By addressing these challenges through dialogue and policy innovation, India and Australia can unlock the full potential of their green partnership.

Summary: A Model for Sustainable Diplomacy

The India-Australia Green Energy Diplomacy is more than a bilateral agreement. It sends a clear message that like-minded, democratic nations can successfully collaborate to build resilient, sovereign and sustainable energy supply chains, reducing dependence on singular sources and mitigating geopolitical risk.

It demonstrates how astute trade policy can be harnessed as a direct instrument for strategic climate action and energy security. This collaboration moves beyond rhetorical commitments to create tangible, investment-driven pathways for decarbonisation. It represents a fusion of "Green Realism", where national economic interests, technological ambition and global environmental imperatives converge.

As the world races toward the net-zero finish line, the strategic partnership between India and Australia, combining Australia’s resources and R&D with India’s market scale and manufacturing ambition, is set to become an indispensable engine of the global clean energy transition. It’s a diplomatic masterstroke that secures both national interests and a sustainable future for the entire Indo-Pacific region.

In the defining challenge of our age, our shared future is not zero-sum, but built on collaboration. The partnership of India and Australia is not only advancing their national interests but also contributing to global efforts to combat climate change, as it stands as a testament to what can be achieved when nations work together towards a common goal, a cleaner, greener and more prosperous future for all.