Ministers from the 14 countries participating in the Indo-Pacific Economic Framework (IPEF) have agreed to collectively invest at least $120 billion by 2030 to promote renewable energy and energy storage technologies. This commitment was made during an online ministerial meeting held on March 14, as the IPEF member nations aim to boost economic ties across four key areas to counter China’s growing influence in the Indo-Pacific region.
The IPEF, led by the United States, includes major economies such as Japan, India, Australia, and South Korea. The framework focuses on deepening cooperation in the realms of supply chains, clean economy, fair economy, and tax and anti-corruption measures. An agreement on supply chain resilience has already taken effect among the members.
During Thursday’s meeting, the ministers effectively reached a consensus on drafting an accord centered on transitioning to a clean economy. The forthcoming clean economy accord will enshrine the $120 billion investment target for renewable energy and storage over the next seven years. This significant financial commitment underscores the IPEF nations’ shared goal of accelerating the shift towards sustainable energy sources and green technologies.
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Additionally, the United States, Japan, Australia, and South Korea pledged a combined $33 million contribution to a fund established last November. This fund aims to support emerging economies within the IPEF framework in achieving carbon neutrality and adopting clean energy solutions.
The next IPEF ministerial meeting is scheduled for June 6, in Singapore, where further discussions on investment mobilization and collaborative efforts towards decarbonization are expected to take place.
