Over a year ago, leaders of the G7 nations initiated discussions to transition emerging economies, particularly India, away from fossil fuels, primarily coal. While Indonesia and Vietnam have signed Just Energy Transition Partnership (JETP) agreements with the G7, India has not, and it appears unlikely in the near future.

Several factors contribute to India's resistance to the JETP. First, the JETP emphasizes the phase-out of coal, which remains a cornerstone of India's energy mix. Second, the level of financing offered is relatively small. Third, there's skepticism about creating a new negotiation on climate funding when previous agreements have not delivered on promises.

India has repeatedly called on wealthy countries to fulfill their pledge to provide $100 billion per year to developing nations for climate change mitigation and adaptation, but progress has been slow.

While the JETP may serve as a political statement for G7 countries to demonstrate their efforts to help developing nations transition from fossil fuels, India sees limited returns in participating. The emphasis on coal is a key obstacle, as India has resisted deadlines for ending coal use.

India argues that coal is essential to meet its growing energy demands, and coal is being unfairly targeted while developed nations continue to rely on oil and gas. India plans to increase coal production from 900 million tons to 1.5 billion tons by 2030 to meet rising demand.

The small size of the funding offered by the JETP, around $8.5 billion, is also a hindrance, as India can leverage larger sums from commercial markets. Estimates suggest India will need approximately $900 billion over 30 years to meet its renewable energy targets.

Furthermore, the nature of the funding, often in the form of loans rather than grants, has raised concerns in other countries, including South Africa and Indonesia.

Despite these challenges, the JETP process could stimulate conversations around a just transition in India, potentially focusing on expanding renewable energy or improving the environmental impact of coal mining and usage. A tailored JETP model for India may be more effective in addressing its specific energy needs and challenges.