Washington, D.C. — A new report from the Center for American Progress and the Council on Energy, Environment and Water makes the case for a deeper trade relationship between the United States and India, as both governments seek to turn action on climate change into economic opportunities.
Both countries have been establishing new trade relationships with partners to build resilient supply chains, support domestic clean energy industries, and generate export opportunities. Given these overlapping approaches, the large size and emissions profile of both economies, and the broader deepening of U.S.-India ties over the past decade, the report argues that there is a compelling case for more collaboration between Washington and New Delhi around green trade.
“Bolstering trade ties between the United States and India would contribute to both countries’ economic, climate, and national security objectives,” said Trevor Sutton, senior fellow at CAP and co-author of the report. “It would magnify ongoing investments by both countries to decarbonize their economies and build resilient and interdependent supply chains for clean technology products.”
“India and the United States have a unique opportunity to collaborate on green trade, creating a win-win scenario for both economies,” said Arunabha Ghosh, CEO of the Council on Energy, Environment and Water and co-author of the report. “Both have also understood that climate action can be translated to economic opportunities. By working together, we can build supply chains that support the global clean energy transition while boosting industries on both sides. India’s growing investments in clean technologies demonstrate its readiness to contribute to global efforts. The future of trade isn’t just about goods—it’s about building a sustainable, green economy that benefits us all.”
Among the strategies for enhancing a U.S.-India green trade partnership, the report recommends that the countries:
- Pursue interoperability of sustainability standards, carbon accounting, customs nomenclature, and green procurement
- Develop shared principles around green subsidies
- Agree on endorsing clean energy subsidies along with joint investment
- Enhance transparency and information exchange to build supply chains based on complementary strengths
- Consider a green goods and services list
- Pursue a bilateral sectoral agreement that ties market access to carbon intensity
- Explore a climate peace clause
- Deepen cooperation around critical minerals
- Host constructive discussions around border carbon adjustments.
- Promote diffusion of next-generation climate technologies
Read the report: “Climate Is the Future of the U.S.-India Trade Relationship” by Trevor Sutton and Arunabha Ghosh
For more information or to speak with an expert, please contact Sam Hananel at [email protected].