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Yasukuni Enoki, the Japanese Ambassador to India, stated recently that both nations need to focus on improving mutual cooperation in the energy sector. According to a joint CSIS-Japan Institute of International Affairs-Confederation of Indian Industry report, “The four most significant areas for meeting India’s energy needs over the next two decades will be energy efficiency, biomass, nuclear energy, and clean coal.” Japan has both market presence and extensive experience in all four areas and can provide New Delhi a viable partnership for a sustainable and security energy policy for the 21^st century. Japan’s unique expertise in energy conservation is vital for India.

A July 2007 agreement to increase cooperation on energy conservation and efficiency standards provides a model for how to utilize Japan’s expertise in the field of energy. The agreement includes “voluntary action plans to improve energy efficiency and increase cooperation in the development of renewable sources.” The meeting produced a joint declaration that includes: bilateral energy audits for specific industrial sectors (e.g., iron, steel and cement); Japanese assistance to India to reduce consumption in “15 identified energy-intensive sectors;” and, Japan agreed to cooperate with the International Energy Agency to help India stockpile oil.

 The launching of a dialogue on oil and natural gas between the Ministry of Petroleum and Natural Gas of India and the Ministry of Economy, Trade and Industry (METI) of Japan is the first of many new attempts to substantially increase energy cooperation between India and Japan. The meeting enhanced dialogue and cooperation between the two high-energy consuming nations, including agreements to increase exchanges of experts, training personnel in clean energy and energy conservation techniques and assisting India in the development of an efficient and cleaner energy infrastructure.