IPEF successfully wraps climate and fair economy negotiations
After endorsing the Supply Chain Resilience agreement, the 14-member Indo-Pacific Economic Framework for Prosperity (IPEF) has declared the successful conclusion of negotiations on fair economy and clean economy agreements, marking a significant milestone in their collaborative efforts.
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Having ratified the Supply Chain Resilience agreement, the 14-member Indo-Pacific Economic Framework for Prosperity (IPEF) has announced the “substantial conclusion” of talks concerning agreements on fostering a fair economy and promoting environmental sustainability.
In addition to achieving consensus on the two agreements, substantial headway was made on the Indo-Pacific Economic Framework for Prosperity Agreement during the IPEF ministerial meeting in San Francisco, USA, as outlined in a collective statement issued by the participating members.
“The IPEF partners will now undertake the necessary steps, including further domestic consultations and a legal review, to prepare final texts of the three proposed agreements,” the statement added.
India, alongside other members of the IPEF such as Australia, Brunei Darussalam, Fiji, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the United States, and Viet Nam, collectively representing 40% of the global economic output and 28% of world trade, has successfully concluded negotiations on the supply chain agreement.
The ongoing discussions within the IPEF, structured around four key pillars, have witnessed the signing of the supply chain agreement, with negotiations on the clean economy and fair economy nearing completion. As of now, the trade pillar remains the focus of ongoing efforts, and while India has not actively participated in the trade talks, it continues to attend negotiator meetings as an observer.
The clean economy pillar addresses crucial aspects of transitioning to cleaner economies, encompassing endeavors related to energy security and transition, climate resilience and adaptation, mitigation of greenhouse gas emissions, and the promotion of sustainable livelihoods with a focus on a just transition.