06 June 2024 PIB
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TABLE OF CONTENTS
1. Indo-Pacific Economic Framework for Prosperity (IPEF) 2. Indian Navy - Royal Navy of Oman Talks 3. India - Qatar Joint Task Force on Investment
1. Indo-Pacific Economic Framework for Prosperity (IPEF)
Syllabus: GS-2, International Relations
Prelims: IPEF
Mains: India and the Indo-Pacific
Context:
India attended the Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial meeting in Singapore.
Background:
- The IPEF Ministerial Statement of November 2023 declared a substantial conclusion of negotiations for a Clean Economy, a Fair Economy, and the overarching Agreement on the Indo-Pacific Economic Framework for Prosperity.
- According to this, the IPEF partners completed a legal review of the text for these agreements and domestic approval processes.
IPEF Ministerial Meeting:
- IPEF members signed these agreements in the Singapore meeting which are first-of-their-kind approaches to addressing 21st-century challenges and strengthening economic engagement across a critical region.
- India actively participated in the signing proceedings and the ministerial deliberations.
- However, India did not formally sign these agreements as domestic approval processes are still underway and will be completed after the formation of the new government.
- These agreements will enter into force after at least five IPEF partners complete their internal legal procedures for ratification, acceptance or approval.
IPEF Clean Economy Agreement
- This agreement will accelerate the efforts of IPEF partners towards energy security and transition, climate resilience and adaptation, and GHG emissions mitigation.
- It will also:
- Find/develop innovative ways of reducing dependence on fossil fuel energy
- Promote technical cooperation, workforce development, capacity building, and research collaborations
- Collaborate to facilitate the development, access, and deployment of clean energy and climate-friendly technologies
- This agreement will facilitate investments, concessional financing, joint collaborative projects, workforce development and Technical Assistance and Capacity Building for industries in India.
- These cooperative activities will be undertaken through joint collaborative actions such as Cooperative Work Programmes and the IPEF Catalytic Capital Fund.
- Cooperative Work Programmes (CPWs) – Many CPWs have been announced and are under discussion on various issues such as hydrogen supply chains, carbon markets, clean electricity, sustainable aviation fuel and just transition. The group announced a new CPW on “e-waste urban mining” led by India.
- IPEF Catalytic Capital Fund – The fund supports the expansion of the pipeline of quality clean economy infrastructure projects in the IPEF emerging and upper-middle income economies.
- The Fund’s founding supporters include Australia, Japan, the Republic of Korea, and the United States.
- They plan to provide USD 33 million in initial grant funding to catalyze up to USD 3.3 billion in private investment.
IPEF Fair Economy Agreement
- This agreement intends to
- Create a more transparent and predictable business environment which can spur greater trade and investment in the markets of member countries
- Promote a level playing field for businesses and workers in the economies of the IPEF partners
- Enhance efforts to prevent and combat corruption by strengthening anti-corruption frameworks, establishing confidential systems, and promoting the participation of groups outside the public sector
- Support efforts to improve tax transparency and exchange of information for tax purposes between competent authorities, domestic resource mobilization, and tax administration
- Support capacity building and to provide technical assistance to the IPEF partners, through sharing of expertise and best practices, development and application of technological innovations, and need-based collaboration with the private sector and other stakeholders
Read more on the Indo-Pacific Economic Framework in the linked article.
IPEF Clean Economy Investor Forum
- India also participated in the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum, which brought together the region’s top investors, clean economy companies, and start-ups to mobilise investments into sustainable infrastructure, climate technology, and renewable energy projects.
- During the two-day event, more than 300 participants from financial institutions, multilateral development banks, venture capital funds, project owners, entrepreneurs and government agencies from IPEF partners actively participated under the Sustainable Infrastructure and Climate Tech engagement tracks.
- In the ClimateTech track, 10 Indian start-ups and companies were selected to pitch their innovative ideas, technologies and solutions that contribute to mitigating or adapting to climate change.
- Investments: the forum resulted in USD 23 billion in investment opportunities for sustainable infrastructure projects in the Indo-Pacific.
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