Indo-Pacific Economic Framework for Prosperity (IPEF) on clean and Fair economy

Source- This post on Indo-Pacific Economic Framework for Prosperity (IPEF) on clean and Fair economy is based on the article “India signs US-led IPEF bloc’s clean, fair economy agreements” published in The Hindu on 23rd September 2024.

Why in News?

Recently, India signed agreements under the US-led Indo-Pacific Economic Framework for Prosperity (IPEF) on clean and fair economy.

About the Indo-Pacific Economic Framework for Prosperity (IPEF) on clean economy

1. The agreement is to facilitate clean energy development and climate-friendly technology deployment.

2. Aim: The clean economy agreement aims to accelerate the efforts of IPEF partners to enhance energy security, mitigate greenhouse gas emissions, and reduce reliance on fossil fuels.

3. Focus: These agreements focus on strengthening anti-corruption measures and enhancing tax transparency among member countries.

4. The agreement emphasizes the development of innovative strategies and promotes technical cooperation between member countries to support sustainable energy solutions.

About Fair Economy Agreement

1. Focus: The fair economy agreement focuses on creating a transparent and predictable business environment to boost trade and investment in member markets.

2. Key areas of the agreement: It includes improving information sharing, facilitating asset recovery, and strengthening cross-border investigations and prosecutions.

3. Investment Facilitation: A new IPEF Catalytic Capital Fund, with an initial grant of $33 million from countries like Australia, Japan, Korea, and the US, aims to mobilize private investments up to $3.3 billion.

4. IPGI Investment Accelerator: The IPEF also launched the PGI Investment Accelerator, initially funded with $300 million from the US International Development Finance Corporation, to catalyze further investments.

About Indo-Pacific Economic Framework for Prosperity (IPEF)

1. IPEF- It is an economic initiative launched by U.S.A. President Joe Biden in 2022.

2. Objective: It provides a platform for countries in the region to collaborate on advancing resilient, sustainable, and inclusive economic growth, and aims to contribute to cooperation, stability, and prosperity in the region.

3. Members: It has 14 partners – Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, U.S.A. and Vietnam.

4. Nodal agency: Department of Commerce for the IPEF engagements.

5. The IPEF comprises four pillars of cooperation namely- Trade, Supply Chain, Clean Economy and Fair Economy.

Read more: IPEF’s Clean Economy Investor Forum

UPSC Syllabus: International agreements