1. India and the United States share a relationship founded on a common and deep commitment to democratic values and bound by growing engagement in diverse fields of human endeavor. During the current visit of President Clinton to India, Prime Minister Vajpayee and President Clinton have outlined their vision for a new relationship in the new century. Cooperation between the two countries in promoting energy and protecting the environment is an important part of their vision for the future.

2. The two countries agree that meeting energy needs in a sustainable manner is one of the most important challenges of the 21st century. They underscore the central role energy plays in economic development, as well as the human health and environmental risks associated with unsustainable energy use. They note that the development of cleaner and more efficient energy technologies will contribute significantly to improving the air quality and protecting the global environment. As leaders in the forefront of the new high technology economy, they recognize that countries can achieve robust economic growth while protecting the environment and taking action to combat climate change.

3. India and the United States note that their common desire to promote clean energy and protect the environment has guided past cooperation and joint initiatives. They accord high importance to this aspect of their bilateral energy cooperation. They intend to activate related mechanisms established in the past, including ministerial meetings under the Indo-US Bilateral Energy Consultations, and to intensify further their cooperation in the fields of clean energy and environmental protection, including the impacts of air and water pollution on human health.

4. The two countries are taking many initiatives on their own to mitigate the impact of energy production and use of the environment. India, which was the first country to establish a full-fledged Ministry for Non-conventional Energy Sources, is working to make renewable energy sources a viable and significant part of India’s energy supply. India is one of the largest users of wind energy and solar energy in the world and has also made impressive advances in generating energy from wastes. India intends to achieve by 2012 a 10 per cent share for renewable energy in the capacity-additions of electricity nation-wide. In the field of conventional energy, India is increasingly making fossil fuel energy cleaner and more efficient. India intends to improve energy efficiency in the electric power sector by focusing on renovation and modernization including re-powering of old power plants to improve Plant Load Factor, upgrading/strengthening of sub-transmission and distribution to reduce Transmission & Distribution losses and introduction of legislation on energy conservation for promoting end use energy efficiency. The proposed Bureau of Energy Efficiency will act as the focal point for effecting end use energy efficiency and formulating goals and objectives in this area. By implementing the above activities, India intends to achieve approximately a 15% improvement in energy efficiency by 2007-08.

5. The United States is committed to a clean energy future and to the goal of reducing greenhouse gas emissions. To this end, the United States pursues a program of research and development, public education, promotion of energy efficient products and practices, and targeted tax incentives. Specific actions during the past year include issuance by the President of an Executive Order mandating reduction in energy use in federal buildings by 30% below 1990 levels by the year 2010; issuance by the President of a directive that sets a target to triple the use of bio-energy in the U.S. over the next decade – a result that would lead to a reduction of 100 million metric tones of carbon, and establishment by the Department of Energy of a goal of increasing to 5% the share of U.S. electricity generated by wind power by 2020.

6. The two countries believe that close bilateral cooperation is needed to promote clean energy initiatives. They also intend to cooperate multilaterally in the appropriate fora for addressing climate change issues. The United States is committed in working cooperatively with India and other developing countries to address clean energy and climate change. Examples of such cooperation include: President Clinton’s International Clean Energy Initiative, a program designed to accelerate clean energy technology transfer to developing countries, and promote trade and investment with them, and, a broad range of technical assistance and commercial development programs through the U.S. Agency for International Development, the Department of Energy, the Department of Commerce, the Environmental Protection Agency, the Export-Import Bank of the United States, and other federal agencies.

7. India and the Unites States reaffirm their strong support for international efforts to combat global climate change under the UN Framework Convention on Climate Change and its Kyoto Protocol. They reaffirm the urgent need for international dialogue on ways in which developed and developing countries could participate in actions to combat climate change, in accordance with the principle of common but differentiated responsibilities, and in a manner consistent with sustained economic growth and social development. They recognize that, under the United Nations Framework Convention on Climate Change, the developed country Parties shall take all practicable steps to promote, facilities and finance, as appropriate, the transfer of, or access to, environmentally sound technologies and know-how to the developing country Parties to enable them to implement the provisions of the Convention. The two countries intend to work together and with other countries in appropriate multilateral fora toward early agreement on the elements of the Kyoto mechanisms, including the Clean Development Mechanism, which could offer opportunity for mutually beneficial partnership between developed and developing countries. They recognize, in particular, that the Clean Development Mechanism could provide important opportunities for economic growth and environmental protection.

8. India and the United States recall their Joint Statement on Co-operation in Energy and Related Environmental Aspects signed in New Delhi by U.S. Energy Secretary Bill Richardson, and Shri Jaswant Singh, Minister of External Affairs of India, on October 26th 1999. The Joint Statement articulated the desire of the two countries to increase cooperation in energy and environment.

9. In pursuit of the collaborative goals set forth in this statement and in the Joint Statement of 26th October 1999, India and the Unites States intend to create a Joint Consultative Group on Clean Energy and Environment to foster greater bilateral cooperation, Government to Government dialogue and further encourage public and private sector co-operation in these sectors. This represents another important step that the two countries have taken in expanding mutually beneficial relations. The Joint Consultative Group will ensure an institutional framework between the two countries to

(a) identify, initiate and monitor public and private collaborative projects in research, development, transfer, demonstration and deployment of appropriate technologies and review policies in the areas of clean energy, renewable energy, energy efficiency and power sector reform, (b) explore and expand opportunities for commercial development and cooperation in clean energy, and (c) enhance cooperation on climate change issues that arise in the context of the United Nations Framework Convention on Climate.

10. The co-conveners of the Group will be the Ministry of External Affairs of India and Department of State of the United States, respectively, with participation by all concerned Agencies/Ministries as determined by either side. Focal points of contacts may be established directly between concerned Ministries and Agencies, with ministerial or other high-level involvement, as considered desirable and appropriate on specific issues.

11. The two countries believe that their strong scientific and technological resources provide a sound basis for intensifying collaborative efforts, especially between the agencies of the two Governments, in research, development, demonstration and transfers of clean energy and renewable energy technologies and for improving efficiency in production and consumption of energy from conventional resources. Progress in these areas can enhance availability of energy and increase productivity and efficiency in the economy, while protecting the environment, reducing impact on the climate and preserving the bio-diversity and natural resources.

12. The two countries emphasize the considerable mutual benefit of expanded private sector cooperation in the energy sector. They welcome the United States Energy Association/Confederation of Indian Industry – Private Sector Trade and Investment Working Group on Clean Energy and the Environment and the creation of a Green Business Center at Hyderabad. The Center, a joint initiative of the Government of Andhra Pradesh, USEA and CII, is a commendable example of international private sector as well as Government – industry collaboration in the area of environment. The two governments expect that their bilateral discussions will benefit from this and other private initiates. For example, they welcome the joint efforts of the United States Agency for International Development, Federation of Indian Chambers of Commerce and Industry and Industrial Credit and Investment Corporation of India.

13. India and the United States believe that energy and environment could be one of the most important areas of cooperation between the two countries. The joint initiatives taken by the two sides will give practical shape to that vision. By making clean energy widely available through development and application of new technologies and strengthening efforts to protect our environment and this planet’s biodiversity, Indo-US cooperation will contribute in significant measure towards further securing the welfare and quality of life of the peoples of the two countries. It will also be a vital contribution towards preserving the riches of our planet for future generations of this world.