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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
  • 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 )

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