Joint Statement from Indo-Pacific Economic Framework for Prosperity Partner Nations

(SAN FRANCISCO) – On November 16, 2023, the U.S. Department of Commerce released the following joint statement from the 14 Indo-Pacific Economic Framework for Prosperity (IPEF) partner nations:

PRESS STATEMENT ON Indo-Pacific Economic Framework for Prosperity Meetings in San Francisco

Substantial Conclusion of Negotiations

The IPEF Clean Economy Agreement

Through the IPEF Clean Economy Agreement, the IPEF partners are committed to actively pursue their shared climate objectives and respective pathways to net-zero emission economies while also ensuring the promotion of sustainable growth and success for all partners. To that end, the proposed agreement covers a range of issues critical to transitions to clean economies, including efforts towards energy security and transition, climate resilience and adaptation, greenhouse gas emissions mitigation, and the promotion of sustainable livelihoods and just transition. 

Specifically, through the cooperative efforts contemplated under the IPEF Clean Economy Agreement, the IPEF partners intend to: 

• accelerate the research, development, commercialization, availability, accessibility, affordability, and deployment of a diverse set of clean energy and climate friendly technologies; 
• strengthen interconnections in the region to help facilitate cross-border business activities through collaboration on infrastructure, technologies, and mutually recognized standards, methodologies, and certifications; 
• strengthen clean energy supply chains across our markets by building a better understanding of the challenges and vulnerabilities of the region’s supply chains and securing more diversified and sustainable sources of critical inputs, including critical minerals or materials, for clean energy technologies;  
• promote renewable energy, energy efficiency, and energy conservation, including by supporting the region’s development of high-quality, reliable, and economically viable electric grids and mini-grids; 
• reduce global anthropogenic methane emissions by 2030, particularly through cost-effective measures in the energy sector;
• decarbonize and otherwise reduce the climate impact of the transportation sector, including through efforts related to the establishment of green shipping corridors, increasing the production and availability of sustainable aviation fuels, and decarbonizing the road sector, including by scaling up infrastructure and a vehicle fleet that supports  zero emission transport (e.g., zero emission vehicles and their associated infrastructure, and sustainable carbon-neutral fuels) while noting the range of pathways that the partners are adopting;  
• identify and advance economic clusters in the region that are focused on integrating innovative clean technologies, promoting clean energy supply chains, and engaging in decarbonization projects;  
• advance sustainable agricultural practices through innovative policies, tools, and technologies, to reduce emissions, increase productivity, and adapt to the impacts of climate change;
• increase efforts towards the sustainable management, conservation, and restoration of forests and other natural ecosystems, addressing drivers of deforestation and degradation, including by working with companies that source products from the Indo-Pacific region, and creating the enabling conditions necessary to facilitate these activities;   
• take steps to lower the cost of greenhouse gas removal technologies by catalyzing investment, promoting research and development, strengthening legal and regulatory frameworks, collaborating on the development of and affordable access to regional and international CCUS value chains, and sharing information on international measurements, reporting, and verifications;    
• accelerate action to promote sustainable water solutions and ocean based solutions, which are considered nature-based solutions and ecosystem-based approaches, in order to progress climate change adaptation and mitigation, including through developing and integrating ocean-based clean energy supply chains, collaborating on water-related climate solutions that seek to reuse and recycle water, and sharing best practices to strengthen protection and restoration of blue carbon;
• bolster the supply of and demand for low- or zero-emissions goods and services, including by working closely with the private sector, reducing potential non-tariff barriers, providing greater clarity and certainty in business environments, or promoting fiscal incentives;  
• recognize the preference among companies to ensure their supply chains are supported by verified low- or zero-carbon emission electricity;
• cooperate with partners in the development of and engagement with carbon markets by working together on issues such as carbon credit certification standards, capacity building for participation in carbon markets, and collaboration to boost high-quality mitigation activities so as to generate credible supply and demand in international carbon markets, including with the private sector; 
• recognize that measuring and managing climate-related financial risk will help safeguard their citizens and economies against the effects of climate change;
• provide opportunities for technical assistance and capacity building to help partners in their transitions to clean economies, including areas such as education and training to advance workforce development, research and development of low-cost climate technologies, and supporting infrastructure modernization; 
• support just transitions for workforces and communities as the IPEF partners move to clean economies and pursue actions related to policymaking, labor rights, social protection, upskilling and reskilling, to create quality jobs and decent work, and social dialogues at all levels; and    
• partner with Indigenous Peoples, and local communities, to enhance efforts to transition to clean economies.

The IPEF partners also seek to increase investment flows to the region to address the acute need for financing for climate-related infrastructure, technologies, and projects in support of their transitions to clean economies. To that end, the proposed agreement includes commitments to:

• increase the flow of investments through measures that will boost investor confidence in the region such as: promoting sustainable finance and transition finance; fostering innovative financial mechanisms; working towards a stable and more seamless regulatory and policy environment; facilitating interoperability of different approaches to financing; and promoting secure, resilient, and diverse clean energy supply chains; and
• mobilize and expand access to financing, including by deploying concessional capital, pursuing blended financing structures, guarantees and risk insurance, and technical assistance consistent with robust labor rights and environmental protections, developing the pipeline of bankable climate projects, and forming public-private partnerships.

As part of these efforts, the IPEF partners will convene an annual IPEF Clean Economy Investor Forum, with the first meeting taking place in Singapore in the first half of 2024, to catalyze investment for sustainable infrastructure and climate technology. The IPEF partners also welcome the establishment of the IPEF Catalytic Capital Fund administered by the Private Infrastructure Development Group to expand the pipeline of bankable climate-related infrastructure projects. 

The proposed agreement would provide a mechanism for the IPEF partners or a group of partners to craft Cooperative Work Programs (CWP) to prioritize their focus and resources towards a common goal. Following the May 2023 announcement by interested IPEF partners of the launch of a regional hydrogen initiative as the first CWP, interested partners are developing a detailed framework for cooperation. The IPEF partners also welcome exploring possible new CWPs, with topics such as blue carbon, sustainable finance, mainstreaming of green jobs, embedded emissions accounting, methane abatement, biofuels, e-waste solutions, clean electricity, carbon markets, and sustainable aviation fuels under consideration.

⇒ Read the U.S. Fact Sheet on the Substantial Conclusion of Negotiations on the IPEF Clean Economy Agreement 

⇒ Read the May 2023 Ministerial Press Statement for the Trade Pillar, Clean Economy Pillar, and Fair Economy Pillar.

⇒ Read the U.S. Summary of the Zero Draft Text for Pillar III.

⇒ Read the Ministerial Statement for Pillar III.