7 June 2024 : PIB Summary For UPSC

1. India participates in the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum

Topic: GS2 – International Relations – Regional and global groupings

Context

At the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum, ten Indian climate tech start-ups were recognized among the top 100. The event highlighted India’s investment potential in clean energy, fostering global investor collaboration and securing significant funding commitments for sustainable infrastructure and renewable energy projects in the Indo-Pacific region.

Event Overview:

• Indian delegation led by Secretary, Department of Commerce, Shri Sunil Barthwal, participated in the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum.
• The forum brought together top investors, clean economy companies, and start-ups to mobilize investments in sustainable infrastructure, climate technology, and renewable energy projects.

Investment Opportunities:

• India offers investment opportunities exceeding USD 500 billion in clean energy by 2030, including renewables, green hydrogen, and EV infrastructure.
• The forum resulted in USD 23 billion in investment opportunities for sustainable infrastructure projects in the Indo-Pacific.

Indian Companies’ Participation:

• 10 Indian companies among the top 100 climate tech start-ups/companies selected by IPEF.
• More than 25 Indian companies pitched projects to over 100 global investors.
• Notable companies include BluSmart, Recykal, LOHUM, Sea6 Energy, EVage Ventures, Kabira Mobility, Batx Energies, Newtrace, Alt Mobility, and igrenEnergi.

Forum Highlights:

• More than 300 participants attended, including financial institutions, multilateral development banks, venture capital funds, project owners, entrepreneurs, and government agencies.
• Discussions included Sustainable Infrastructure Investment, bridging gap between Innovators & Investors, and Trade & Investment Policies for Sustainable Growth.

Significant Agreements:

• Offtake Agreement signed between Sembcorp Green Hydrogen India, Kyushu Electric, and Sojitz for 200 KTPA green ammonia production and export from India to Japan.
• The agreement supports India’s National Green Hydrogen Mission.

Launch of Catalytic Capital Fund:

• IPEF Catalytic Capital Fund launched to deploy concessional financing, technical assistance, and capacity-building support.
• Initial grant funding of USD 33 million aims to catalyze up to USD 3.3 billion in private investment.

Indo-Pacific Economic Framework for Prosperity (IPEF):

Launched by the US in May 2022 to strengthen economic ties in the Indo-Pacific region. 14 member countries including major economies like India, Japan, and South Korea. Focuses on four pillars: Trade, Supply Chain Resilience, Clean Economy, and Fair Economy.Aims to promote economic growth, fairness, and sustainability for members. Flexible approach – countries can choose which pillars to participate in (e.g., India sits out of trade discussions).Still under development, with member countries negotiating specific agreements within each pillar.

Practice Question:  Discuss the significance of the Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum in advancing India’s sustainable infrastructure and climate technology sectors. (250 Words /15 marks)

(Source – https://pib.gov.in/PressReleseDetail.aspx?PRID=2023122 )