Amitabh Kant | Samir Saran

The United States (US) and the European Union (EU) have shifted beyond market-led climate action toward state-backed green industrial policy, driven by competitiveness, economic security, and technological leadership concerns. Despite differences in approach, Atlantic strategies share an inward focus that positions the Global South primarily as a consumer market or supplier of intermediate inputs. Such models are politically unsustainable for developing economies and economically inefficient for achieving the scale required for the global energy transition. This brief argues for moving from competition-driven industrial policy toward co-development and shared prosperity across regions. It proposes a Green Development Compact that integrates Northern capital, innovation, and corporate capacity with Southern scale, speed, and renewable endowments. It outlines practical instruments to operationalise this framework, including long-term offtake guarantees, shared innovation commons, and financial mechanisms that reduce risk for Southern projects.

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Source: ORF Website, January 3, 2026