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The Quad is an informal diplomatic alliance between Australia, India, Japan, and the US, aimed at promoting an open, stable, and prosperous Indo-Pacific. Hence, statement 1 is correct. Initially proposed by Japanese Prime Minister Shinzo Abe in 2007, it became a formal group in 2017 after overcoming challenges like Australia's earlier withdrawal under Chinese pressure. The QUAD Climate Change Adaptation and Mitigation Package (Q-CHAMP) focuses on green shipping corridors, clean energy cooperation, and climate information services. Hence, statement 2 is correct. The US, like India, has a Free Trade Agreement (FTA) with both Japan and Australia. But as of now, there is no Quad FTA. Hence, statement 3 is not correct.