Indo-Pacific Economic Framework
IPEF Clean Economy Agreement
The IPEF Clean Economy Agreement will deliver a first-of-its kind regional agreement to boost the clean energy transition and climate action.
The agreement sets the framework for regional clean economy cooperation into the future.
Australia's renewable energy superpower ambition
The IPEF Clean Economy Agreement will provide a new platform to support Australia's ambition to become a renewable energy superpower. Under this agreement, we will work with IPEF partners on:
- energy security and transition – in areas such as electrification, development of clean energy technologies, and abatement of energy sector methane
- advancing low-greenhouse gas solutions through low-and-zero-greenhouse gas technologies in aviation, maritime, rail and road transport
- sustainable land, water and ocean solutions such as sustainable agriculture, management of forests and other natural ecosystems
- development and deployment of innovative technologies by strengthening demand and mobilising investment
- policies to help ensure a just transition towards a clean economy, such as promoting labour rights and decent work for affected communities.
The IPEF Clean Economy Agreement recognises Indigenous Peoples' spiritual connection with the land, oceans and our natural ecosystem, and promotes partnering with Indigenous Peoples in the clean economy transition.
New cooperative programs for a greener future
New initiatives will bring the IPEF Clean Economy Agreement to life. IPEF countries will work together over the coming years on multiple cooperative work programs, linking the private sector into government- led initiatives. These will benefit Australia and the region.
The work programs include a regional hydrogen initiative, announced in May 2023, to promote deployment of renewable and low-carbon hydrogen and its derivatives.IPEF partners will establish work programs in other areas such as emissions accounting to facilitate growth in green trade and sustainable finance frameworks to unlock greater private sector support for decarbonisation.
Catalysing green finance
The IPEF Clean Economy Agreement will incentivise private sector finance to support the region's clean energy transition:
- an IPEF Clean Economy Investor Forum, to be held annually from 2024, will boost investment in the region's sustainable infrastructure and climate technology
- an IPEF Catalytic Capital Fund, established in collaboration with the Private Investment Development Group, will help ODA-eligible IPEF countries develop a pipeline of bankable climate infrastructure projects, catalysing private sector investment.