US Withdrawal from the International Solar Alliance

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Picture Courtesy:  THEHINDU

Context

The US withdrawal from 66 international bodies, including the India-headquartered International Solar Alliance (ISA), is expected to affect global climate action, Indian leadership, and the energy transition in the Global South.

 What is International Solar Alliance (ISA)?

Origin

It was launched in 2015 by the Prime Minister of India, Narendra Modi, and the President of France, François Hollande, at the COP21 summit in Paris.

Headquarters

The ISA is the first international organisation headquartered in India at the National Institute of Solar Energy (NISE) in Gurugram, Haryana.

Membership

Originally intended for "sunshine countries" between the Tropics of Cancer and Capricorn, a 2020 amendment opened membership to all United Nations Member States. As of early 2026, it has over 125 member and signatory countries.

Mandate

To scale up the deployment of solar energy technologies, making solar power more affordable and accessible, especially in developing nations. It focuses on mobilizing finance, de-risking investments, and promoting technology adoption.

The "Towards 1000" Strategy

The ISA operates under a flagship roadmap to achieve four major milestones by 2030: 

• Investment: Mobilize $1 trillion for solar energy solutions.
• Access: Provide clean energy access to 1 billion people.
• Capacity: Install 1,000 GW of solar energy capacity globally.
• Emissions: Mitigate 1,000 million tonnes of CO₂ emissions annually. 

Flagship Initiatives

• One Sun One World One Grid (OSOWOG): A vision to create a transnational renewable electricity grid that shares solar power globally ("The Sun Never Sets").
• Global Solar Facility (GSF): A payment guarantee fund designed to de-risk solar investments, particularly in underserved regions like Africa.
• STAR-C Program: A network of Solar Technology and Application Resource Centres for training, testing, and standardising solar technology.
• SolarX Startup Challenge: An initiative to promote innovation and entrepreneurship in the solar sector. 

Governance

• ISA Assembly: The apex decision-making body where each member country has one vote.
• Leadership: Traditionally, India holds the Presidency and France holds the Co-Presidency.
• UN Status: The United Nations General Assembly granted the ISA Observer Status in 2021. 

How will the U.S. exit affect the ISA?

The U.S. exit poses both practical and symbolic challenges, though its direct financial impact is expected to be minimal.

Impact on Indian solar industry 

The Indian domestic solar ecosystem is largely insulated from the immediate effects of the U.S. withdrawal due to its strong internal fundamentals.

Robust Manufacturing Growth

India has scaled up its domestic solar manufacturing. By late 2025, solar module manufacturing capacity is projected to reach 144 gigawatts (GW), a jump from 63 GW in 2024 (Source: Ministry of New and Renewable Energy).

Policy-Driven Self-Reliance

Government policies like the Production Linked Incentive (PLI) scheme have successfully catalyzed investments across the solar value chain, promoting self-reliance

Stable Investment Pipeline

Investments in the solar sector are driven by strong domestic demand and long-term Power Purchase Agreements (PPAs). The U.S. is not a primary source of funding for Indian solar projects.

Key Risks for the Global South

The true economic risk of the U.S. exit is concentrated in developing nations, particularly in Africa, Least Developed Countries (LDCs), and Small Island Developing States (SIDS).

Dependence on International Finance

These regions depend heavily on multilateral development banks and international cooperation for concessional financing to de-risk solar projects; less multilateral commitment increases investment risks.

Existing Barriers to Adoption

Developing nations already struggle with high upfront costs, poor grid infrastructure, and technical expertise gaps, issues that a less cooperative global climate could exacerbate.

Impact on ISA's Role

The ISA is vital for African energy access, as the continent has 60% of global solar resources but only 1% of solar capacity. Investment cuts threaten key projects like solar pump installations in Senegal and Uganda, and Mali's 500 MW Solar Park. (Source: International Solar Alliance

Implications for India's Global Leadership

The U.S. withdrawal elevates India's responsibility and provides an opportunity to solidify its leadership in global climate action.

ISA as a Diplomatic Tool: The ISA is a core element of India's foreign policy, highlighting commitment to South-South cooperation and reflecting the nation's broader vision of "One Earth, One Family, One Future."

Increased Onus on India: The responsibility to steer the alliance, mobilize funds, and maintain momentum now falls heavily on India and France.

Opportunity to Cement Influence: Navigating this challenge successfully will solidify India's reputation as a dependable global leader, able to build coalitions and provide global public goods.

Way Forward For India

Diversify Funding

Lead efforts to broaden the ISA's funding base by engaging other major economies, development banks, and the private sector to create innovative financing solutions.

Strengthen South-South Cooperation

Use platforms like the G20 to enhance technical assistance and capacity-building programs for ISA member countries.

Champion the OSOWOG Vision

Accelerate the "One Sun One World One Grid" initiative to create large-scale, bankable regional grid interconnection projects that attract investors

Build a Resilient Domestic Industry

Build a complete domestic solar manufacturing ecosystem, from polysilicon to modules, to secure India's energy future and establish it in the global solar supply chain.

Conclusion

The U.S. withdrawal from the ISA challenges climate cooperation but offers India a strategic opportunity to lead the Global South by strengthening the alliance's capacity and its domestic solar industry.

Source: THEHINDU