IPEF Should Be a Template for Climate-Friendly Trade

Country representatives currently negotiating proposed language for final agreement

*** Sierra Club senior policy staff are available to discuss our vision for a new trade model. ***

The Indo-Pacific Economic Framework (IPEF) offers an opportunity to adopt a new trade model that prioritizes the needs of people and the planet. President Biden launched IPEF almost a year ago, introducing a framework for economic cooperation among the U.S., India, Japan, Australia, Malaysia, and several other countries.  Representatives from these countries are currently negotiating proposed language on each of the four pillars that will make up the final agreement: Trade, Supply Chains, Clean Economy, and Fair Economy. 

The Sierra Club believes that this agreement should not only protect existing environmental and climate policies but also increase the ambition for new policies. As a new template for trade and economic cooperation, IPEF should not encourage a global race to the bottom but rather promote and protect environmental commitments, human rights, and strong labor standards. To that end, the Sierra Club calls for binding and enforceable commitments on climate change and environmental protection in IPEF.

Below are key provisions related to the environment and climate that IPEF must include in order to begin to build a new model of trade that is good for people and the planet. See our full list of recommendations here. 

  • IPEF should include, throughout the agreement, binding and enforceable climate and environmental commitments, with specific references to existing environmental treaties  and the Paris Agreement on climate.
  • IPEF members should agree to refrain from using dispute settlement mechanisms to block each other’s domestic efforts aimed at climate change mitigation or their transition to a clean economy.
  • IPEF should empower members of the public to make claims to bring enforcement actions on facilities and supply chains causing harm to their communities.
  • The Clean Economy Pillar should protect and encourage domestic procurement preferences that incentivize cleaner energy and materials and federally assisted programs and establish a space for collaboration on carbon accounting in energy intensive traded goods.


About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.