TOKYO, 12th October, 2024 (WAM) -- Clean and fair economy agreements involving the United States, Japan and a dozen other Indo-Pacific countries have taken effect in a step to advance decarbonisation and economic cooperation in the region, Kyodo News reported.
The deals on two of the four pillars of the Indo-Pacific Economic Framework entered into force on Friday and Saturday, respectively. An accord on strengthening supply chains already took effect in February, while the remaining pillar is still being negotiated.
Under the Clean Economy Agreement, 14 IPEF economies aim to accelerate energy transition in the fast-growing region by incorporating hydrogen into their energy plans, enhancing the deployment of sustainable aviation fuel and the efficient procurement of clean electricity.
Six countries including Japan, Singapore and the United States had completed domestic processes for the clean economy pillar by September, clearing the requisite threshold for an IPEF accord.
Thailand, the United States and four other countries had completed their domestic processes to approve the fair economy pillar by last month.
The IPEF economies reached substantial conclusions on the Clean Economy Agreement and the Fair Economy Agreement in November in San Francisco.
The outlook for a deal on trade, the fourth and final pillar of the economic initiative, remains uncertain partly due to divisions over digital trade.