TAG: GS 2: INTERNATIONAL RELATIONS
THE CONTEXT: The Indo-Pacific Economic Framework for Prosperity (IPEF) is organizing a two-day Clean Economy Investor Forum meet in Singapore recently.
EXPLANATION:
- Senior officials from India’s commerce ministry, including Commerce Secretary and Additional Secretary are participating in the event.
- This forum aims to mobilize investments into sustainable infrastructure, climate technology, and renewable energy projects, showcasing India’s leadership in the clean economy sector.
Indo-Pacific Economic Framework for Prosperity (IPEF)
- It was launched in May 2022.
- The Indo-Pacific Economic Framework for Prosperity (IPEF) includes 14 partner countries: Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the US, and Vietnam.
- The IPEF focuses on promoting resilient, sustainable, and inclusive economic growth in the region, with four pillars of cooperation:
- Trade,
- Supply Chain,
- Clean Economy, and
- Fair Economy.
- Notably, India is not part of the trade pillar.
- The IPEF is not a Free Trade Agreement (FTA), but it allows members to negotiate the parts they want to.
Objectives of the Clean Economy Investor Forum
- The IPEF Clean Economy Investor Forum aims to:
- Mobilize investments into sustainable infrastructure and climate technology projects.
- Facilitate collaboration among top investors, philanthropies, financial institutions, innovative companies, startups, and entrepreneurs in the region.
- Showcase India’s innovative solutions and leadership in the clean economy space to global investors.
Indian Participation
- The Department of Commerce is the nodal agency for India’s IPEF engagements, and Invest India, the national investment promotion agency, manages the IPEF Clean Economy Investor Forum.
- The Indian delegation aims to pitch projects and attract investment from over 150 participating investors.
- The focus will be on two main tracks:
- Climate technology and
- Sustainable infrastructure.
Climate Technology Track
- Under this track, the forum will:
- Hold an open call to recognize the top climate tech companies and startups from member countries.
- Present these companies to global investors to attract investment and support.
Infrastructure Track
- India will showcase investible sustainable infrastructure projects, focusing on sectors such as:
- Energy Transition: Projects related to electric grids, renewable energy (solar and onshore wind), sustainable aviation fuel, battery storage, hydrogen, and green data centers.
- Transport and Logistics: Initiatives involving electric vehicles (EVs) and EV charging points.
- Waste Management: Projects converting waste to energy.
Strategic Importance
- The Clean Economy Investor Forum is crucial for:
- Highlighting India’s capabilities and initiatives in clean technology and sustainable infrastructure.
- Attracting foreign investment to support India’s transition to a clean economy.
- Strengthening collaboration with IPEF partner countries to enhance regional economic stability and prosperity.
