IPEF Ministers Vow to Cooperate in Decarbonization, Fair Economy; Agreement Expected at Thursday Summit Meeting

By Takeru Tsuzuki, Hiroyuki Tanaka / Yomiuri Shimbun Staff Writers

16:44 JST, November 15, 2023

SAN FRANCISCO — A ministerial meeting of the Indo-Pacific Economic Framework for Prosperity (IPEF), a new economic zone initiative led by the United States, concluded its two-day discussion in San Francisco on Tuesday. The ministers confirmed contents of agreements for two out of the four areas of discussion — “clean economy” and “fair economy” — which are expected to be substantially agreed upon at the summit meeting slated for Thursday.

From Japan, Foreign Minister Yoko Kamikawa and Economy, Trade and Industry Minister Yasutoshi Nishimura attended the ministerial meeting. “We made very significant progress in the areas of clean economy and fair economy,” Nishimura told reporters after the meeting. “The final decision will be made based on discussions at the summit level,” he said.

In the area of clean economy, the participating countries announced that they will establish a fund to help emerging countries’ decarbonation efforts. Its aim is to encourage private sector investment in fields such as hydrogen. Japan will contribute approximately $10 million (about ¥1.5 billion) to the fund. The United States and Australia will also make contributions, and the total is expected to be at the $30 million-level.

In the area of fair economy, the nations will cooperate to prevent corruption and money laundering, as well as to ensure transparency of taxation.

In the area of “supply chain,” which reached a substantial agreement in May, the participants signed an agreement on sharing of semiconductors and important minerals. Discussions will continue in the area of “trade,” in which an agreement was not reached this time.