From UPSC perspective, the following things are important :
Prelims level: IPEF Clean Economy Investor Forum
Mains level: NA
Why in the news?
The Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum is set to be held in Singapore.
About IPEF Clean Economy Investor Forum
- The IPEF Clean Economy Investor Forum brings together the region’s top investors, philanthropies, financial institutions, innovative companies, start-ups and entrepreneurs.
- The Forum aims to mobilize investments into sustainable infrastructure, climate technology and renewable energy projects.
- It is managed by Invest India (www.investindia.gov.in), India’s National Investment Promotion Agency.
- The Department of Commerce is the nodal agency for the IPEF engagements.
The Forum will have opportunity for the Indian industry in the two following tracks:
- Climate Tech Track: Under this track, IPEF Clean Economy Investor Forum is holding an open call that aims to recognise the top climate tech companies and start-ups among the member countries and present them to global investors.
- Infrastructure Track: Under this track, India will showcase selected investible sustainable infrastructure projects at the 2024 Forum. The sectors of focus are-energy transition (e.g electric gird; renewable energy, including solar, and onshore wind; sustainable aviation fuel; battery storage; hydrogen; green data centers), transport and logistics (e.g. Electric Vehicle, EV charging points), waste management/waste to energy.
About Indo-Pacific Economic Framework for Prosperity (IPEF)
- It is a US-led initiative that aims to strengthen economic partnerships among participating countries to enhance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness in the Indo-Pacific region.
- The IPEF was launched in 2021 with 12 initial partners who together represent 40% of the world GDP.
- The IPEF is NOT a Free Trade Agreement (FTA) but allows members to negotiate the parts they want to.
Four main “Pillars” of IPEF:
Trade that will include digital economy and emerging technology, labor commitments, the environment, trade facilitation, transparency and good regulatory practices, and corporate accountability, standards on cross-border data flow and data localisations; Supply chain resilience to develop “a first-of-its-kind supply chain agreement” that would anticipate and prevent disruptions; Clean energy and decarbonization that will include agreements on “high-ambition commitments” such as renewable energy targets, carbon removal purchasing commitments, energy efficiency standards, and new measures to combat methane emissions; and Fair Economy Agreement, with commitments to enact and enforce “effective tax, anti-money laundering, anti-bribery schemes in line with [American] values”. |
Members Countries include:
- Currently, India and 13 countries other located in the Pacific Ocean are its members: Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, and Vietnam.
How is IPEF different from other trade deals?
- No market access or tariff reductions have been outlined in the IPEF, although experts say it can pave the way to trade deals.
- It’s not a take-it-or-leave-it arrangement, like most multilateral trade deals are.
- Since the IPEF is not a regular trade pact, the members so far are not obligated by all four pillars despite being signatories.
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