New Delhi, March 26: India and Canada are advancing a new Strategic Energy Partnership following the visit of Prime Minister Mark Carney to New Delhi, positioning the collaboration as a potential model for North–South clean energy cooperation.
The partnership spans LNG, LPG, uranium, solar, hydrogen, and critical minerals, backed by commercial agreements worth over CAD 5.5 billion. Canada has also committed to joining the International Solar Alliance and upgrading its role in the Global Biofuels Alliance, aligning with India’s multilateral clean energy initiatives.
India’s energy transition remains highly ambitious, with a target of 500 GW of non-fossil fuel capacity by 2030—requiring annual additions of 40–50 GW. A separate clean energy MoU outlines cooperation across solar, wind, bioenergy, small hydro, and storage, supported by a joint working mechanism.
Canada is positioning itself as a supplier of low-carbon LNG, uranium, and critical minerals, alongside partnerships in grid expansion and energy storage. The agreement reflects India’s strategy to increase the share of natural gas in its energy mix as a transition fuel while scaling renewables.
However, analysts caution that long-term LNG contracts could extend into the 2040s, potentially conflicting with India’s net-zero target of 2070 and global decarbonisation pathways. The success of the partnership will depend on whether gas usage remains time-bound and complemented by investments in next-generation clean technologies.
Encouragingly, the collaboration extends beyond trade to ecosystem development, including research partnerships such as those involving Simon Fraser University and the Hydrogen Association of India, aimed at advancing innovation in hydrogen and energy storage.
Going forward, the partnership’s impact will hinge on scaling investments in renewable infrastructure, grid expansion, and battery supply chains. Canada’s financial institutions and investors are expected to play a critical role in supporting large-scale solar, wind, and storage projects in India.
If effectively executed, the India–Canada energy pact could mark a turning point in global clean energy collaboration. However, its long-term credibility will depend on prioritising sustainable infrastructure over fossil fuel expansion, ensuring alignment with climate goals and energy security objectives.
