Expanding Green Horizons: Clean Tech Market Opportunities for U.S. Businesses in the Indo-Pacific Region

image depicting a cityscape in the background with wind turbines and solar panels in the foreground

October 16, 2024

Arun Venkataraman is the Assistant Secretary of Commerce for Global Markets and Director General of the U.S. and Foreign Commercial Service

On the margins of the 79th United Nations General Assembly, business, political and civil society leaders from around the globe gathered in New York City for Climate Week to drive forward on global climate action goals. At the U.S. Department of Commerce, we know the private sector plays a critical role in fighting the climate crisis and U.S. companies are at the forefront of providing innovative solutions. With their leadership in developing cutting-edge clean energy technologies, micro-, small- and medium-sized American businesses are ready to facilitate the clean transition and to help achieve our ambitious global climate goals.

For U.S. clean tech companies, the Indo-Pacific region is shaping up to be a hotspot for export opportunities. Between 2021 and 2023, the International Trade Administration (ITA) helped U.S. companies get involved in over $5.4 billion worth of climate projects worldwide and facilitated nearly $39 billion in climate-related foreign direct investment into the United States. This surge in clean tech investments has been driven, in part, by the historic Inflation Reduction Act (IRA), along with the CHIPS and Science Act and the Bipartisan Infrastructure Law—together mobilizing over one trillion dollars, the largest-ever climate investments in U.S. history.

Meanwhile, for U.S. businesses eyeing the Indo-Pacific market, these monumental investments provide a powerful springboard to tap into the region’s growing demand for clean tech solutions, driving sustainability at home and boosting U.S. industry competitiveness around the world.

Clean Tech Opportunities in the Indo-Pacific

Countries across the Indo-Pacific region are actively seeking new technologies and services in key sectors like carbon capture, electric vehicles, renewable energy, and green ports. Here are a few standout opportunities:

- In The Philippines, U.S. companies can partner with local energy developers to advance geothermal projects. The country offers 100% foreign ownership for renewable energy projects, along with incentives that make the market especially attractive.

- Indonesia is working to ‘green’ 149 of its ports, opening doors for U.S. firms specializing in emissions reduction, energy optimization, and eco-friendly port technologies.

- India’s electric vehicle market is projected to skyrocket from $23 billion in 2024 to $118 billion by 2032. This growth creates huge potential for U.S. businesses offering battery products, charging infrastructure, and battery management systems.

New Multilateral Developments

One of the initiatives that showcases the Indo-Pacific region’s commitment to clean tech energy exports is the Indo-Pacific Economic Framework for Prosperity (IPEF), which was launched in May 2022 with 14 partner countries, including the United States. IPEF was created to strengthen economic ties with allies and partners, increase regional prosperity and tackle 21st century economic challenges.

IPEF includes three landmark economic cooperation agreements promoting resilient and competitive supply chains, accelerating the transition to cleaner economies and promoting a more predictable, level playing field for businesses in the region.

Through the IPEF Clean Economy Agreement, the partner countries are creating a framework through which they intend to support each other’s climate objectives by accelerating the deployment of clean technologies and facilitating investment in climate-related projects. It includes measures that span a wide variety of climate and energy issues with the aim to urgently reduce greenhouse gas emissions and build climate resilience. You can read the full text here.

Next Steps

Visit the International Trade Administration’s New Exporters site on trade.gov to get the tools and resources you need to enter this dynamic region. If you are already exporting to the Indo-Pacific, we encourage you to search for opportunities in the Market Intelligence database and contact your local U.S. Commercial Service office for additional information and assistance. Together, we can unlock innovation and accelerate clean energy technologies toward a sustainable future.