Prime Minister Modi and President Biden Discuss Indo-Pacific Economic Framework and Clean Energy Partnership
Wilmington (Delaware) [US], September 22: The United States and India emphasized the goals of the Indo-Pacific Economic Framework (IPEF) to enhance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness among its signatories. The IPEF includes 14 partners representing 40% of global GDP and 28% of global trade.
Key Agreements and Collaborations
The leaders welcomed India’s ratification of the IPEF Agreements under Pillar III, Pillar IV, and the overarching Agreement. They praised the strong collaboration under the Strategic Clean Energy Partnership (SCEP), which recently met on September 16 in Washington, DC. This partnership aims to strengthen energy security, foster clean energy innovation, address climate change, and create job opportunities.
Prime Minister Modi and President Biden also announced a new National Center for Hydrogen Safety in India and affirmed their intent to use the Renewable Energy Technology Action Platform (RETAP) to enhance clean energy manufacturing and global supply chains. Additionally, they announced a new Memorandum of Cooperation between the US Agency for International Development and the International Solar Alliance to promote sustainable power systems.
Commitment to Critical Minerals and Renewable Energy
The leaders reaffirmed their commitment to developing sustainable supply chains for critical minerals under the Minerals Security Partnership. They looked forward to signing the Critical Minerals Memorandum of Understanding at the upcoming US-India Commercial Dialogue. Both sides also welcomed progress on India’s potential membership in the International Energy Agency (IEA) and committed to accelerating renewable energy and clean technology deployment in India.
The National Investment and Infrastructure Fund (NIIF) of India and the US International Development Finance Corporation plan to provide up to USD 500 million each to support the Green Transition Fund, encouraging private sector investment in green initiatives.
IPEF Supply Chain Agreement
The IPEF Supply Chain Agreement aims to establish a framework for deeper collaboration to prevent and mitigate supply chain disruptions, such as those experienced during the COVID-19 pandemic. The agreement was negotiated during the IPEF Ministerial meeting in September 2022 in Los Angeles, California. Five IPEF partners, including Fiji, India, Japan, Singapore, and the US, have ratified the agreement, triggering its entry into force.
Doubts Revealed
Indo-Pacific Economic Framework (IPEF) -: The Indo-Pacific Economic Framework (IPEF) is a group of countries working together to make their economies stronger and more sustainable. It includes 14 countries from the Indo-Pacific region, which is the area around the Indian and Pacific Oceans.
Clean Energy Partnership -: A Clean Energy Partnership is when countries work together to use energy that doesn’t harm the environment, like solar or wind power. This helps reduce pollution and fight climate change.
National Center for Hydrogen Safety -: The National Center for Hydrogen Safety is a place in India where experts will make sure that using hydrogen as a clean energy source is safe. Hydrogen can be used to power cars and factories without causing pollution.
Critical minerals -: Critical minerals are special types of rocks and metals that are very important for making things like batteries, phones, and computers. They are called ‘critical’ because they are essential for modern technology.
Renewable energy deployment -: Renewable energy deployment means setting up more places to use energy from natural sources like the sun, wind, and water. This helps reduce the use of fossil fuels, which can harm the environment.