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FACT SHEET: IPEF Clean Economy Investor Forum

IPEF Partners Announce $23B of Sustainable Infrastructure Investment Opportunities at Inaugural Clean Economy Investor Forum 

On June 6, 2024, approximately two years since President Joe Biden launched the Indo-Pacific Economic Framework for Prosperity (IPEF), the United States joined its 13 IPEF partners – Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Viet Nam – to launch the inaugural IPEF Clean Economy Investor Forum. The Investor Forum was developed to catalyze investment for sustainable infrastructure and climate technology projects, consistent with strong environmental, social and governance-based (ESG) investing and labor standards, and is part of a larger financing framework designed to advance the IPEF Clean Economy Agreement. The first-of-its-kind Forum resulted in $23 billion in investment opportunities for sustainable infrastructure projects in the Indo-Pacific.

“These announcements symbolize the beginning of what is possible through IPEF. The inaugural Clean Economy Investor Forum is further strengthening U.S. ties in the region, which has been made possible by the tremendous amount of work by the IPEF partners over the last two years that has brought us to this point,” said U.S. Secretary of Commerce Gina Raimondo. “IPEF is a unique framework that will position U.S. businesses to find opportunities to invest, grow and expand in some of the most dynamic economies in the world. I’m proud by the success of this first event, but more so, I’m excited by the potential it demonstrates of what is possible through the IPEF mechanism that will help secure our long-term partnerships in the region.”

About the Inaugural Clean Economy Investor Forum

The first Clean Economy Investor Forum gathered the region’s largest investors and innovative project proponents, the IPEF Ministers and government agencies, along with other organizations, including philanthropies, companies, and multilateral development banks from across the United States and the Indo Pacific to exchange market insights, explore business opportunities, and establish a pipeline of investment opportunities. The IPEF partners identified $23 billion of priority infrastructure projects for consideration at the inaugural Forum. In addition, participating climate technology startups seeking $2 billion in new funding pitched investors. During the Forum, leading investors responsible for managing trillions of dollars shared their plans for scaling and accelerating capital deployments to IPEF economies.

Catalyzing Private Investment in the Region

During the Forum, Global Infrastructure Partners, KKR, and the Indo-Pacific Partnership for Prosperity announced a new coalition to catalyze infrastructure investment across IPEF emerging economies. Coalition members, which also include Allied Climate Partners, BlackRock, GIC, the Rockefeller Foundation, and Temasek, will help facilitate the identification, promotion, and development of successful infrastructure projects in IPEF countries. They will also support coordination with governments, multilateral development banks, and development finance institutions to create solutions to de-risk investments. The coalition estimates that its members, taken together, have over $25 billion in capital that can be deployed in Indo-Pacific emerging market infrastructure investments in the coming years.  

The IPEF Partners and the Private Infrastructure Development Group announced the operational launch of the IPEF Catalytic Capital Fund, which deploys 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 party to the IPEF Clean Economy Agreement. Projects in development include a renewable energy platform in India, a diesel replacement program in Indonesia, and a water treatment plant in Vietnam. The Fund’s founding supporters include Australia, Japan, the Republic of Korea, and the United States, which plan to provide $33 million in initial grant funding to catalyze up to $3.3 billion in private investment.

Showcasing Climate Tech Startups in the Indo-Pacific

After reviewing 10,000 climate technology companies from IPEF economies, HolonIQ selected and announced the Indo-Pacific Climate Tech 100, 10 of which are U.S. companies, which span across biosphere, food systems, circular economy, carbon markets, data and finance, resources, renewables, storage and distribution, built environment and mobility. The innovative U.S. companies that were selected include: Altana, Antora, Ascend Elements, Charm Industrial, Commonwealth Fusion Systems, Fervo Energy, Form Energy, Gradiant, Heirloom, and Redwood Materials.

Additionally, participating U.S. companies, government agencies, and organizations announced a host of major commitments, projects, and partnerships at the Forum, which include the following:

  • I Squared Capital is committing $1.5 billion towards energy transition, climate investment, and digital inclusion projects in IPEF emerging economies, including green data centers in Indonesia, a renewables platform in the Philippines, as well as advanced smart meters and hybrid renewables in India. This investment includes up to $650 million of equity capital from the Climate Fund that I Squared announced with the U.S. International Development Finance Corporation last year.
  • Google announced that it is working with the Fiji National Provident Fund to expand the Pacific Connect initiative by establishing a green ICT park in Fiji, which will include Fintel’s Pacific Connect internet exchange, submarine cables connecting to Japan, Australia, Chile and the United States, as well as 2.5MW of data center capacity. Over the last year, Google has worked with several IPEF countries and communications providers to begin building a series of submarine cables. These projects are advancing Google’s goal to run its entire business on carbon-free energy 24/7 by 2030.
  • The Global Energy Alliance for People and Planet (GEAPP) announced that India’s first commercial standalone Battery Energy Storage System (BESS) project is expected to be commissioned in Q1 2025. GEAPP provided technical assistance and a concessional loan covering 70% of the project cost, which effectively reduced the annual capacity tariff for the buying utility in New Delhi (BRPL) by over half and set a new standard for BESS affordability in India. Building on this successful pilot, GEAPP aims to support 1GW of BESS projects in the country by 2026.
  • Bloom Energy announced two partnerships to eliminate carbon emissions and other pollutants while delivering reliable economic power in Singapore. First, Bloom is partnering with Sembcorp on projects that will utilize Bloom’s solid oxide and carbon capture technologies to produce reliable, carbon-free electricity to meet Singapore’s changing energy needs. Second, Bloom is partnering with JCI and SK Ecoplant on a solid oxide fuel cell installation that will reduce cold storage energy costs, reduce carbon emissions, and eliminate particulate matter.
  • Amazon Web Services (AWS) announced that it is funding several water replenishment projects in Indonesia, where it has pledged to invest $5 billion by 2036 into cloud infrastructure. In West Java, AWS is partnering with Water.org to improve education, training, and access to water in high-stress river basins and watersheds, including expanding direct water service connections to more than 35,000 citizens. As part of its goal to be Water Positive by 2030, AWS is also working with Habitat for Humanity to improve access to water, sanitation, and hygiene as well as to develop healthcare and disaster management capabilities across nine villages in the Bekasi and Karawang Regencies.
  • Digital Edge and Peak Energy, Stonepeak portfolio companies, announced a partnership to provide renewable energy to Digital Edge’s data centers in the Philippines, Indonesia, Japan, Korea and other markets in the Indo Pacific. By harnessing a combination of solar, wind, and storage technologies, this partnership will support the decarbonization of up to 1 GW of colocation capacity power over a three-year period.
  • The U.S. International Development Finance Corporation (DFC) is contributing an equity investment to the Southeast Asia Clean Energy Fund II (SEACEF), pending congressional notification, which will enable SEACEF to raise approximately $175 million to invest early-stage capital in projects and companies that will accelerate the transition to a climate-resilient economy and increase energy security in Southeast Asia. SEACEF’s investments will catalyze financing from other investors for projects in clean power, energy storage, energy efficiency, electric mobility, and grid infrastructure.

DFC’s Board has also approved an equity investment as part of the $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. Eversource will invest in companies operating in the following sectors: renewable energy, energy transition, electric mobility, circular economy, water management, and sustainable food and agriculture. By being in the first close of the Fund, which is expected later this year, DFC’s early investment has been instrumental to mobilizing additional capital.

Originally posted at https://www.commerce.gov/news/fact-sheets/2024/06/fact-sheet-ipef-clean-economy-investor-forum

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