IPEF Forum: Showcases Sustainable Infrastructure and Climate Tech

Indian delegation, led by Secretary, Department of Commerce, Shri Sunil Barthwal participated in the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum, which brought together the region’s top investors, clean economy companies, and start-ups to mobilise investments into sustainable infrastructure, climate technology, and renewable energy projects.

Commerce Secretary Shri Barthwal during the inaugural IPEF Clean Economy Investor Forum, acknowledged the forum as a unique platform that brought global investors, project proponents, policy makers, academia, etc., under one roof which would be instrumental in advancing sustainable infrastructure in the Indo-Pacific Region. Shri Barthwal while addressing the investor forum under IPEF underlined the huge investment opportunities that India offers of more than USD 500 billion, particularly in clean energy value chain including renewables, green hydrogen and EV and its infrastructure transition, by 2030. Shri Barthwal also highlighted key reforms around ease of doing business in India to improve business environment over the last decade.

During the two-day event, more than 300 participants from financial institutions, multilateral development banks, venture capital funds, project owners, entrepreneurs and government agencies from IPEF partners actively participated under the Sustainable Infrastructure and Climate Tech engagement tracks.

In the Sustainable Infrastructure track, after the screening, four companies (ReNew Power, Avaada Energy Pvt. Ltd, Indusbridge Capital Advisors LLP. Founder, SEIP, and Powerica Limited) from India were shortlisted for pitching their concepts on energy transition, transport and logistics, and waste management/waste to energy to global investors.

Further, in the ClimateTech track, 10 Indian start-ups and companies (BluSmart, Recykal, LOHUM, Sea6 Energy, EVage Ventures Private Limited, Kabira Mobility Private Limited, Batx Energies Private Limited, Newtrace and Alt Mobility, igrenEnergi, Inc.) were selected to pitch their innovative ideas, technologies and solutions that contribute to mitigating or adapting to climate change.

Catalysing Investment:  The first-of-its-kind Forum resulted in USD 23 billion in investment opportunities for sustainable infrastructure projects in the Indo-Pacific. The coalition estimates that its members, taken together, have over USD 25 billion in capital that can be deployed in Indo-Pacific emerging market infrastructure investments in the coming years. DFC’s Board has also approved an equity investment as part of the USD 900 million Eversource Climate Investment Partners II fund, which will provide capital, management, and expertise to innovative companies using new and existing capabilities to address climate change in India and Southeast Asia.

The IPEF partners and the Private Infrastructure Development Group announced the operational launch of the IPEF Catalytic Capital Fund, which would deploy concessional financing, technical assistance, and capacity-building support to expand the pipeline of quality, resilient, and inclusive clean economy infrastructure projects in emerging and upper-middle income economies, for instance, projects in development include a renewable energy platform in India. The Fund’s founding supporters include Australia, Japan, the Republic of Korea, and the United States, which plan to provide USD 33 million in initial grant funding to catalyze up to USD 3.3 billion in private investment.

A coalition of investors, including Singapore’s Temasek and GIC, have committed to injecting USD 25 billion in infrastructure investments in emerging markets that are part of an economic alliance between the US and several Asia-Pacific countries.

The event also witnessed signature of an Offtake Agreement between Sembcorp Green Hydrogen India Private Limited, Kyushu Electric and Sojitz for production and export of 200 KTPA green ammonia from India to Japan. The event was attended by Ministers from Singapore and Japan and Shri Barthwal. The agreement aims to increase production and export of 200 KTPA green ammonia capacity in Phase-I (total 800 KTPA in 4 phases) at Tuticorin Port in India and export to Japan. The project proposed above would further the objective of the National Green Hydrogen Mission implemented by India towards making India as global hub for production and export of green hydrogen and its derivatives.

The IPEF forum meetings witnessed addresses from ministers of IPEF members, participation from top fund houses, insightful panel discussions and pitching sessions from infrastructure companies and climate tech startups. The panel discussions saw wide exchange of ideas from dignitaries on Sustainable Infrastructure Investment for a Resilient Future, bridging gap between Innovators & Investors and a conversation with IPEF ministers on Trade & Investment Policies for Sustainable Growth.

During interaction with Indian companies and start-ups, Additional Secretary, Department of Commerce and India’s Chief Negotiator for IPEF, Shri Rajesh Agrawal, explained as to how the IPEF Agreements (Pillars II, III and IV) will facilitate investments, concessional financing, joint collaborative projects, workforce development and Technical assistance and Capacity Building for industries, in particular MSMEs, to further integrate the Indian companies in the value chains, particularly in the Indo-Pacific region. He also emphasised that the Investor Forum provides an opportunity for Indian companies and start-ups to seek funding and collaborate with global investors, specifically in the CleanTech and Infrastructure development sectors, which will in turn assist India in meeting its Net-Zero target by 2070.

Ms. Nivruti Rai, Managing Director and CEO of Invest India, expressed her enthusiasm for the establishment of the Forum, highlighting its focus on fostering the transition to a clean economy in the Indo-Pacific region through mutual growth and innovation. She emphasized that India, as a significant contributor to global GDP growth, relies on investors to drive critical and flourishing sectors, underscoring the country’s commitment to sustainable development and economic progress.