India has decided to participate in a U.S.-led initiative under the Indo-Pacific Economic Framework (IPEF) that focuses on developing carbon markets. This is part of the "clean energy pillar" of the IPEF.
What are carbon markets?
Carbon markets allow countries and companies to trade carbon emission permits. Those who emit less than their allotted permits can sell them to those who exceed their limits. This can incentivize reducing emissions.
What does India's participation mean?
By joining this initiative, India is indicating a willingness to work with the U.S. and other IPEF members on creating a system for trading carbon credits. This could potentially help India meet its climate change goals.
What about the other clean energy initiatives under IPEF?
India is currently considering joining two other clean energy programs under IPEF:
Clean electricity: This program would focus on promoting the use of clean energy sources like solar and wind power. Sustainable aviation fuel: This program would explore ways to increase the use of sustainable fuels in airplanes, which could help reduce emissions from the aviation industry.
India will decide on joining these programs after further evaluation.
What is the Indo-Pacific Economic Framework (IPEF)?
The IPEF is a U.S.-led initiative in the Indo-Pacific region that aims to establish common standards and rules on various trade-related issues. It has four main pillars:
● Connectivity and digital trade
● Resilient supply chains
● Clean energy
● Corruption-free fair trade
Why did the U.S. create IPEF?
Some analysts believe the U.S. created IPEF to counter China's growing economic influence in the region. By offering an alternative economic framework, the U.S. hopes to strengthen its economic ties with other Indo-Pacific countries.
SRIRAM's
Share:
Get a call back
Fill the below form to get free counselling for UPSC Civil Services exam preparation
