India will press for enhanced access to clean energy technologies for its companies through joint ventures and collaborative finance under the Indo-Pacific Economic Framework’s (IPEF) clean energy pillar (pillar three) as negotiators of the US-led grouping are making efforts to push the talks towards conclusion at the on-going sixth negotiation round in Malaysia, sources have said.

“The talks on IPEF pillar 3 are almost final,” the source following the development closely told businessline. “It may be part of the Ministerial declaration when trade ministers from IPEF countries meet next month.”

“Since the focus is on reducing greenhouse gasses (GHG) emission in various sectors such as agriculture, manufacturing, transportation, maritime and shipping, there has to be technology transfer and collaborative finance for India and other developing country members to make it possible,” the source added.

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The IPEF, which includes the US, India, Australia, Brunei, Fiji, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam, was launched by US President Joe Biden in Tokyo in May of 2022. It is seen by many policy watchers as US’s attempt to challenge China’s increasing influence amongst South and Southeast Asian countries.

Under IPEF, the 14 members are working on a common set of rules and standards around four pillars: connectivity and digital trade; resilient supply chains; clean energy; and corruption-free fair trade. Tariff cuts are not on the agenda at all mainly as the US government does not want to get into tariff negotiations.

It is one of the fastest-moving negotiations with members having already wrapped up pillar two negotiations on resilient supply chains. 

“The Commerce & Industry Ministry will soon move a Cabinet note seeking clearance for pillar two so that India is in a position to sign the agreement on the particular pillar at the IPEF Ministerial meeting if all other member countries are prepared to do so,” the source said.

New Delhi has so far kept itself out of the pillar one negotiation on trade as its components, such as framing of high-standard rules on the digital economy, including cross-border data flows and data localisation, and labour and environment issues, are highly sensitive for it. There is no change in that stance, the source said.

“If India can make the other IPEF members agree to the need for technology transfer and collaborative finance to developing countries in principle, it would have managed to open the window for further talks when implementation happens. It is true that direct technology transfer is something that the developed countries will not agree to, that’s why India is proposing the joint venture route,” the source said.

Members are also proposing various work programmes under pillar three seeking collaborative efforts with India suggesting one on the international biofuel alliance launched during the G20 Summit in New Delhi.

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