India-UAE CEPA Facilitates Climate-Aligned Economic Cooperation
The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, has evolved into a significant climate-aligned partnership. With bilateral trade increasing to over $80 billion, CEPA supports climate action through investment in clean energy and green hydrogen initiatives.
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The India-UAE CEPA has resulted in bilateral trade nearly doubling to over $80 billion since May 2022, which facilitates long-term infrastructure investments in clean energy. The UAE is investing over 6.6 GW in clean energy capacity in India, leveraging its $30 billion Alterra climate investment platform, while both countries are poised to enable up to 60 GW of renewable energy investments.
CEPA also promotes cooperation on green hydrogen, combining India's renewable potential with the UAE's infrastructure and trade expertise. This model of climate finance without conditionality contrasts with slower flows from developed economies, offering a pragmatic approach to mobilizing climate capital. The CEPA demonstrates the potential of aligning economic interests with climate goals.
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