Indo-Pacific Economic Framework Prioritizes Clean Economy for Sustainable Development

INTI- Detroit, United States, In recent years, there has been a growing momentum in the clean economy sector, particularly in the field of energy transition, to achieve global Net-Zero Emissions targets. As a new form of cooperation, the Indo-Pacific Economic Framework (IPEF) aims to address sustainable and environmentally friendly economic issues through Pillar III, focusing on the Clean Economy.

Pillar III was one of the discussion sessions during the IPEF Ministerial Meeting held in Detroit, USA, on March 27, 2023. Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of Industry Agus Gumiwang, and Indonesian Ambassador to the United States Rosan Roeslani attended and actively participated in the meeting and conference involving 14 member countries of the IPEF.

IPEF participants welcomed the progress of negotiations within Pillar III and agreed to explore various ways to achieve their respective climate goals, as previously stated in the IPEF Ministerial Statement in September 2022. Areas of cooperation to be advanced within Pillar III include research, commercialization, availability, accessibility, and the implementation of clean energy and climate-friendly technologies.

IPEF will also facilitate investments in projects related to climate change goals. By supporting policies and markets in the clean economy sector, IPEF strives to achieve sustainable, resilient, and affordable energy in the Indo-Pacific region. Moreover, IPEF will consider the national conditions and development needs of each IPEF member country in the field of the clean economy.

During the IPEF Ministerial Meeting, Coordinating Minister Airlangga expressed support for the implementation of high-tech technologies such as blue and green ammonia, Small Modular Reactors (SMR), and hydrogen-based renewable energy technologies. Additionally, he sought clarification regarding the link between IPEF investment policies and the PGII (Priority Geothermal Infrastructure Initiative). The US government stated that the investment policies of IPEF and PGII would remain separate.

Several IPEF member countries expressed interest in introducing hydrogen initiatives in the Indo-Pacific region to promote the deployment of low-carbon and renewable hydrogen and its derivatives. US Secretary of Commerce, Gina Raimondo, appreciated Singapore and Japan for their leadership and support in the hydrogen initiatives within Pillar III of the IPEF.

Looking ahead, IPEF participants anticipate collaboration involving expertise from the public and private sectors, which will drive new investments, industrialization, cooperation opportunities, as well as innovation and productivity in designing individual pathways towards Net-Zero Emissions Economies.

In the areas of employment and the clean economy, IPEF member countries are also committed to promoting a just transition through the creation of decent and quality jobs and labor rights based on the International Labour Organization (ILO) Declaration.

To advance negotiations and cooperation in the clean economy, IPEF participants will enhance their efforts to achieve high and mutually beneficial development standards in upcoming negotiation rounds. ***.Hans