- India has opted to take part in one of four cooperative work programmes launched under the Indo Pacific Economic Framework’s ‘Clean energy pillar’.
- India will join the cooperative working group on carbon markets, led by the Ministry of Power.
What is the Indo-Pacific Economic Framework (IPEF)?
- It is a US-led project aimed at improving the Indo-Pacific region’s resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness through stronger economic partnerships among participants.
- The IPEF was founded in 2021 with a dozen first partners representing 40% of global GDP.
- The IPEF is not a Free Trade Agreement (FTA), although members can negotiate the areas they want to.
Members Countries include:
- India is currently a member, together with 13 other Pacific Ocean countries: Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the United States, and Vietnam.
How does IPEF differ from other trade agreements?
- The IPEF does not include market access or tariff reductions, but experts believe it can open the road for trade accords.
- It is not a take-it-or-leave-it agreement, as most global trade treaties are.
- Because the IPEF is not a standard trade agreement, members are not yet compelled by all four pillars, despite being signatories.
Source: https://www.thehindubusinessline.com/economy/ipef-india-to-join-us-led-co-operative-work-programme-on-carbon-market/article67969212.ece#:~:text=India%20has%20decided%20to%20join,and%20promoting%20carbon%20market%20activities.