By Suresh Unnithan
In a sweeping move on January 7, 2026, President Donald Trump signed executive orders directing the United States to withdraw from 66 international organizations and treaties deemed contrary to American interests. This mass exit includes the India-led International Solar Alliance (ISA), a coalition aimed at promoting solar energy worldwide. The decision has sparked global outrage, particularly in India, where the ISA is headquartered and viewed as a flagship initiative under Prime Minister Narendra Modi. While the setback ripples through international climate efforts, it hits Indian billionaire Gautam Adani’s renewable energy ventures hardest, raising questions about US-India relations under Trump’s second term.
The Birth of ISA
The ISA was launched in 2015 during the Paris Climate Summit by Modi and then-French President François Hollande. Headquartered in Gurugram, India, the alliance focuses on mobilizing $1 trillion in solar investments by 2030 to deploy 1,000 GW of solar energy capacity, primarily in sun-rich countries between the Tropics of Cancer and Capricorn. With 125 member and signatory countries as of early 2026, the ISA has facilitated projects in areas like solar-powered agriculture, mini-grids, and training programs. However, critics note that its operations remain heavily concentrated in India, with limited tangible projects elsewhere, making it appear more as a domestic booster than a truly global entity.
The US joined the ISA in 2021 under President Joe Biden, pledging support for clean energy transitions. This involvement included technical expertise, funding contributions, and collaborative research, aligning with broader US climate goals. Yet, Trump’s abrupt reversal underscores a return to his “America First” doctrine, prioritizing domestic energy independence over multilateral commitments.
What Prompted the US Exit?
Trump’s administration justified the withdrawal by labeling many organizations, including the ISA, as “mismanaged,” “ideologically driven,” and a “waste of taxpayer funds.” In official statements, the White House argued that these bodies undermine US sovereignty and economic competitiveness, often advancing agendas conflicting with American priorities like fossil fuel production and deregulation. The ISA, along with entities like the Intergovernmental Panel on Climate Change (IPCC) and the International Renewable Energy Agency (IRENA), was targeted for its focus on climate issues, which Trump has long dismissed as burdensome regulations.
This move echoes Trump’s first term, when he pulled the US from the Paris Agreement in 2017, citing unfair burdens on American industries. In 2026, with rising domestic energy demands and a push for oil and gas dominance, the administration views international solar pacts as distractions from exploiting US shale resources. Critics, including environmental groups, decry it as shortsighted, arguing it isolates the US from global innovation in renewables. On X (formerly Twitter), users have labeled it a “collapse of multilateralism,” with posts highlighting the ISA’s inclusion in the exit list as a direct snub to India.
How the ISA Benefited Adani
Gautam Adani, whose Adani Group is India’s largest renewable energy player, has been a prime beneficiary of the ISA’s ecosystem. Adani Green Energy Limited (AGEL) was established in 2015, coinciding with the ISA’s formation, and has since grown into a behemoth with over 10 GW of operational capacity, aiming for 45 GW by 2030. The alliance’s emphasis on solar has aligned perfectly with Adani’s ambitions, providing indirect benefits through policy support, international visibility, and investment flows.
In India, the ISA has bolstered government incentives like subsidies and tariffs that favour domestic solar manufacturing. Adani’s Mundra Solar PV, one of Asia’s largest solar plants, benefited from import duties lobbied in 2018, which protected local producers like Adani from cheap Chinese panels, raising project costs but securing market share. Globally, the ISA’s partnerships have opened doors for Adani’s expansions into Australia, the Middle East, and Africa, where solar projects tie into bilateral ties strengthened by India’s ISA diplomacy. For instance, Adani’s $1 billion renewable investments announced in 2023 were amplified by ISA-driven global forums, attracting foreign capital.
Adani has also leveraged the ISA’s narrative for branding. Sponsorships, like that of the British Science Museum in 2021, positioned Adani Green as a climate leader, despite controversies over coal ties. With ISA operations skewed toward India, Adani’s domestic dominance—holding a significant portion of India’s solar capacity—has been supercharged, turning the alliance into a de facto enabler of his green empire.
Impact on Adani’s Business Expansion
The US exit poses risks to Adani’s global aspirations. While AGEL’s core operations are in India, it seeks $35 billion for solar, wind, and hybrid projects over five years, much reliant on international financing. The ISA facilitated US-India solar collaborations, including potential tech transfers and funding from bodies like the US International Development Finance Corporation. Without US participation, these channels dry up, potentially slowing Adani’s entry into North American markets or joint ventures.
Moreover, the move could deter global investors wary of fractured climate alliances. Adani already faces US legal scrutiny over alleged bribery in solar contracts, which has shaved billions from market value. A diminished ISA might reduce advocacy for solar in developing nations, where Adani eyes growth in Africa and Southeast Asia. However, Adani’s resilience shines through domestic strength; India’s solar targets remain intact, and partnerships with Europe and the Middle East could fill gaps. Still, experts warn of higher borrowing costs if global sentiment sours on Indian renewables.
A Sign of Trump’s Apathy Toward India?
US’s exit fuels speculation of Trump’s cooling affection for India. Despite past bonhomie with Modi—marked by “Howdy Modi” rallies—recent rhetoric reveals strains. Trump has accused India of high tariffs and threatened 500% duties on exports if it continues buying Russian oil. Labeling the ISA “anti-American” directly undercuts Modi’s legacy project, seen by some as deliberate apathy.
Yet, it’s more policy-driven than personal. Trump’s “America First” clashes with India’s strategic autonomy, including energy ties with Russia. Delays in US Apache helicopter deliveries and tariff threats aggravate tensions, but shared interests in countering China via the Quad may temper full rupture. Indian officials maintain restraint, focusing on bilateral talks, but the ISA snub signals a transactional US approach, prioritizing deals over alliances.
In short, Trump’s ISA exit marks a retreat from global climate leadership, disproportionately affecting Adani’s solar juggernaut amid his $35 billion expansion plans. While Adani may pivot domestically, the broader hit to US-India ties under Trump’s tariff-heavy stance suggests a rocky road ahead. As the world grapples with energy transitions, this decision underscores the fragility of multilateralism in an era of nationalism.
Inputs from Nanditha Subhadra
