Paper: GS – II, Subject: International Relations, Topic: Regional and global groupings, Issue: U.S. withdrawal from ISA.
Context:
The United States announced its withdrawal from several international organisations, including climate platforms. Among them is the International Solar Alliance (ISA), a global body led by India and France.
Key Takeaways:
| What is the International Solar Alliance (ISA)? Established in 2015, launched at COP21 (Paris). Headquarters: Gurugram, India. Jointly led by India and France. Objective: Promote solar energy adoption, especially in tropical and developing countries. Mobilise finance, reduce risks, and accelerate deployment. Membership: Over 120 countries across Asia, Africa, and island nations. ISA does not build plants directly, but: Facilitates investments, provides policy and technical support and Reduces financing risks Role of the U.S. in ISA: The U.S. joined ISA in 2021. Financial contribution: Accounts for around 10% of ISA’s total funds. Contribution is important symbolically, but not decisive financially. |
Will U.S. Exit Affect ISA Financially?
- Limited direct financial impact: ISA funding is diversified.
- Other member countries continue support.
- However, confidence and signalling effect matters:
- U.S. exit may: Reduce global investor confidence and Create perception of weakened climate commitment
- Ripple effect more psychological than fiscal.
The U.S. exit from ISA is not a fatal blow, but a strategic stress test. ISA remains institutionally strong, but India’s leadership role becomes more critical than ever. Global solar transition will continue, though with greater responsibility on developing nations.
Source: (The Hindu)
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