Two cabinet notes on IPEF's clean and fair economy soon
commerce and industry ministry is finalising two cabinet notes for the clean economy and fair economy pillars of the Indo-Pacific Economic Framework (IPEF) as the inter-ministerial discussions are almost complete.
The IPEF is structured around four pillars-trade, supply chains, clean economy and fair economy. India has joined all the pillars except the one on trade. «We are working on the cabinet notes and the inter-ministerial consultations are almost done. There were some concerns but broadly everyone is on board,» said an official. Last year, the 14 IPEF nations inked a supply chain resilience agreement to reduce dependence on China, and shifting production of critical sectors and key goods to member countries.
Pillar III (clean economy) focuses on environmental issues, how to mitigate greenhouse gas emissions in various industries, carbon capture utilisation and storage, and collaborative financing mechanisms to facilitate trading and reduce barriers for low-carbon projects.
Member countries are expected to decarbonise and reduce the climate impact of the transportation sector, follow advanced sustainable agricultural practices, address drivers of deforestation and degradation, including by working with companies that source products from the Indo-Pacific region.
Pillar IV (fair economy) of the IPEF deals with issues such as tax and anti-corruption. The agreement on fair economy intends to create a more transparent and predictable business environment, which can spur greater trade and investment in the
