September 22, 2024: India has signed a series of groundbreaking agreements focused on Clean Economy, Fair Economy, and a broader Indo-Pacific Economic Framework (IPEF) arrangement. The agreements were finalized on September 21, 2024, in Delaware, USA, during Prime Minister Narendra Modi’s visit for the Quad Summit.
The IPEF Clean Economy Agreement, part of the third pillar of the framework, aims to foster collaboration among member countries in clean energy technologies and climate resilience. The agreement emphasizes technical cooperation, workforce development, and capacity building to accelerate energy security and reduce greenhouse gas emissions.
“This agreement will not only facilitate investments in green technology but also enhance the integration of Indian companies into global supply chains,” said a government spokesperson. Initiatives under this agreement include the Indo-Pacific Economic Framework Catalytic Capital Fund and joint projects aimed at promoting sustainable practices, particularly among micro, small, and medium enterprises (MSMEs).
IPEF Fair Economy Agreement focuses on creating a transparent trade and investment environment
The IPEF Fair Economy Agreement focuses on creating a transparent trade and investment environment. Key components include combating corruption, enhancing tax transparency, and improving information sharing among partners. These measures are designed to strengthen India’s efforts against corruption and bolster the overall business climate.
“By enhancing collaboration in preventing bribery and promoting tax administration, we are taking concrete steps towards a fairer economic landscape,” the spokesperson added.
The overarching IPEF Agreement establishes a Ministerial-level oversight mechanism to coordinate efforts across the various agreements. It aims to provide long-term identity and governance to the Indo-Pacific Economic Framework partnership, ensuring effective implementation of its initiatives.
Indo-Pacific Economic Framework Catalytic Capital Fund to Accelerate Clean Energy Goals
India’s participation in the Indo-Pacific Economic Framework is expected to significantly boost investment in renewable energy and climate technologies. The inaugural Investor Forum in June identified over $23 billion in priority infrastructure projects, including $4 billion from India, offering substantial opportunities for investment in renewable energy sectors.
With the establishment of the IPEF Catalytic Capital Fund and additional initiatives, including the PGI Investment Accelerator, India is poised to receive increased support for its clean energy goals.
These agreements mark a pivotal step in India’s commitment to sustainable development and economic integrity. As the country integrates into the global economy, the focus on clean and fair practices will be vital for driving growth and innovation.
