IPEF: India to join US-led co-operative work programme on carbon market

  • March 20, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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IPEF: India to join US-led co-operative work programme on carbon market

Subject: Environment

Section: Int Conventions

Context:

  • India has decided to participate in at least one of the four cooperative work programmes under the US-led Indo-Pacific Economic Framework (IPEF), specifically focusing on carbon market activities.

Details:

  • The Ministry of Power and the Bureau of Energy Efficiency will lead India’s involvement in this programme.
  • Additionally, India is considering joining initiatives related to clean electricity and sustainable aviation fuel but will make a final decision after a thorough evaluation.

Indo-Pacific Economic Framework (IPEF):

  • Launched by US President Joe Biden in May 2022, the IPEF aims to enhance regional cooperation among 14 partners in the Indo-Pacific region.
    • The 14 members of the IPEF are- Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, The Philippines, Singapore, Thailand, Vietnam, the USA
  • The IPEF is not a Free Trade Agreement(FTA) but allows members to negotiate the parts they want to.
  • The framework’s objectives include establishing common rules and standards across four pillars: digital trade connectivity, resilient supply chains, clean energy, and fair trade.
  • Notably, the IPEF does not involve tariff cuts.
  • India has chosen to participate in three pillars, excluding the trade pillar.
  • India’s Focus on Carbon Markets:
    • India is actively developing its carbon markets and recently amended its carbon credits trading scheme to facilitate independent standards for carbon trading and allow non-obligated entities to generate carbon credits.
    • Through its participation in the IPEF’s carbon markets work programme, India aims to learn from other countries’ experiences and explore the potential for standardising and integrating carbon markets internationally.

India’s involvement in other programmes:

  • India is evaluating its involvement in cooperative work programmes on clean electricity, led by Japan, and sustainable aviation fuel, initiated by Singapore.
  • Decisions on joining these programmes will consider their relevance to India’s national interests.
  • The work programme on ‘just transition’ launched by the Philippines is also under consideration by many countries, focusing on workforce development.

Source: TH BL

Environment IPEF: India to join US-led co-operative work programme on carbon market