India to join U.S.-led carbon market project

Relevance: International Relations

India's Participation in IPEF Initiatives

• Cooperative Work Programmes: India has chosen to participate in one of the four cooperative work programmes unveiled under the 'clean energy pillar' of the U.S.-led Indo Pacific Economic Framework (IPEF).
• Carbon-Market Activities: India will join the cooperative working group on facilitating and promoting carbon-market activities, emphasizing its commitment to clean energy initiatives.
• Consideration of Other Initiatives: India is contemplating participation in two additional cooperative work programmes focusing on clean electricity and sustainable aviation fuel, pending thorough analysis.

Mechanism of Participation

• Nodal Body: The Ministry of Power will oversee India's involvement in the cooperative working group on carbon markets, with the Bureau of Energy Efficiency serving as the nodal body.
• Strategic Decision-making: India's decision to join specific initiatives reflects strategic considerations and alignment with national priorities in the energy sector.

Overview of Indo Pacific Economic Framework (IPEF)

• Initiative Background: IPEF, led by U.S. President Joe Biden, was introduced in May 2022, bringing together 14 regional partners (Australia, Brunei, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the U.S. and Vietnam) with the aim of fostering cooperation and addressing shared challenges.
• Key Objectives: IPEF focuses on establishing common rules and standards across four pillars, including connectivity and digital trade, resilient supply chains, clean energy, and corruption-free fair trade.
• Counterbalancing China's Influence: Many analysts perceive IPEF as a strategic move by the U.S. to counter China's increasing influence in the Indo-Pacific region, emphasizing collaboration among member countries.