In News:

India signed agreements within the US-led 14-member IPEF focused on a clean and fair economy.

• Objectives:
  • Facilitate development, access, and deployment of clean energy and climate-friendly technologies.
  • Strengthen anti-corruption measures and promote tax transparency among member countries.
• Clean Economy Agreement:
  • Aims to accelerate energy security and mitigate greenhouse gas (GHG) emissions.
  • Focuses on innovative methods to reduce reliance on fossil fuels and promote technical cooperation.
• Fair Economy Agreement:
  • Seeks to create a transparent and predictable business environment to enhance trade and investment.
  • Emphasizes information sharing, asset recovery facilitation, and strengthening cross-border investigations.
• Funding Mechanisms:
  • IPEF offers platforms for technical assistance and concessional funding.
  • IPEF Catalytic Capital Fund: Initial grant of $33 million aimed to catalyze $3.3 billion in private investments.
  • PGI Investment Accelerator: Received $300 million from the US International Development Finance Corporation.
• Concerns Raised:
  • Experts highlighted concerns over the secrecy of IPEF negotiations with limited public input.
  • Expressed hope that India has not agreed to a non-derogation clause that could limit domestic regulatory flexibility for national projects.
• Potential Risks:
  • Most standards discussed in IPEF are aligned with those in the US and OECD countries.
  • India risks compliance pressures in future trade deals if it adopts these standards without adequate preparation.
• Strategic Importance of IPEF:
  • Involves 14 member countries, focusing on economic cooperation through four key pillars: trade, supply chain resilience, clean economy, and fair economy.
  • Represents 40% of the global economy and 28% of world trade, highlighting India's commitment to regional partnerships alongside the US, Japan, Australia, and other Indo-Pacific nations.