Clean Economy Agreement

Negotiations on the Clean Economy Agreement were substantially concluded on 14 November 2023. 

The Clean Economy Agreement will advance regional cooperation to accelerate deployment of clean energy technology, develop offshore electricity infrastructure for cross-border electricity trade, promote carbon market activities, collaborate on regional and international Carbon Capture, Utilisation and Storage (CCUS) value chains, and promote sustainable transport, amongst others. 

The text of the Agreement can be found here, and the Ministerial Statement can be found here.

Benefits of Clean Economy Agreement

  1. Cooperative Work Programmes

The Clean Economy Agreement establishes a novel mechanism for IPEF partners to develop and participate in “Cooperative Work Programmes” (CWPs), which seeks to advance the objectives of the Agreement.  The first CWP to be announced was the regional hydrogen initiative in May 2023. The scope of cooperation includes exchanges of information and sharing of best practices on methodologies, standards, and certifications on the carbon intensity of hydrogen and its carriers as well as cross-border pilots and demonstration projects. Since its launch, IPEF partners have organised capacity-building initiatives, a hydrogen capacity building workshop organised by Japan in August 2023 during Japan week, and a seminar on green hydrogen held during the Asia Clean Energy Summit in Singapore in October 2023. IPEF partners are exploring additional CWPs, such as on sustainable aviation fuels, clean electricity, carbon markets and just transition. 

  1. Financing Initiatives

Two financing initiatives have been announced as part of the Clean Economy Agreement. The first is a Climate Fund comprising US$300 million in public financing by the US International Development Finance Corporation, matched by another US$900 million in private funding by US equity firm iSquared Capital. The second is a Catalytic Capital Fund, managed by Private Infrastructure Development Group (PIDG), to assist with project preparation in emerging IPEF countries.

  1. Clean Economy Investor Forum

The Clean Economy Agreement includes commitments to mobilise investment and finance, including through an annual investor forum that brings together IPEF governments, investors, project proponents and entrepreneurs, with the objective of matching funding to projects and catalysing investment into sustainable infrastructure and climate technology. Singapore will host the inaugural IPEF Clean Economy Investor Forum on 5 - 6 June 2024. More information on the Clean Economy Investor Forum can be found here.