hes tapping the fret an octave higher than the fingered notes
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He's essentially playing the 12th fret harmonic for each string by fretting normally, and using his right index finger to lightly press the (equivalent) 12th fret whilst picking the string with his right thumb.

So, fret 4th fret, lightly press over the 16th with right index (as you would normally play a 12 fret harmonic note) and pick with right thumb.

Tricky at first, but not too bad after a bit of practice.

EDIT: @ JordanFlayer, he's not tapping, watch his thumb carefully.
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Last edited by Joeval at Jan 12, 2012,
Looks like he's picking the string with his thumb and holding his finger 12 frets above whatever note he's playing with his left hand. They're called harp harmonics, IIRC.

EDIT: Yep, what they said. Here's a video that should show you how to do them pretty well. http://www.youtube.com/watch?v=3QLPZ4KEtzw
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It's not impossible at all. You just have to be very light on the strings. If you do more than just touch the string, you're going to mute the harmonic.