India and the European Union (EU) have reinforced their commitment to a sustainable future through a joint statement emphasizing a green and clean drive towards decarbonization. This agreement aims to stimulate economic growth via green innovation, focusing on clean energy, decarbonization strategies, and enhanced supply chains. The partnership represents a united pledge towards a greener future and promotes economic synergy.
The joint statement, issued on Tuesday, underscores the importance of closer economic ties between India and the EU to drive growth, create jobs, promote green transition and industrial development, and foster more resilient, sustainable, and trustworthy supply chains in the face of global uncertainties and disruptions.
Both sides have agreed to strengthen the India-EU Clean Energy and Climate Partnership, encompassing energy technologies, smart grids, energy storage, electricity sector regulation, and energy and climate diplomacy. Key initiatives include operationalizing the India-EU Green Hydrogen Task Force, hosting an India-EU Wind Business Summit, and expanding collaboration on sustainable mobility solutions like sustainable aviation fuels and electric vehicles, including charging standards.
The roadmap also outlines cooperation on several areas including industrial decarbonization, carbon markets, climate adaptation and disaster resilience. Furthermore, it includes water security, circular economy, sustainable agriculture, and resilient health systems. Both India and the EU have committed to collaborate on global climate frameworks, including the Paris Agreement and biodiversity targets.
To help India's greenhouse gas mitigation efforts, the EU has envisaged providing €500 million in support over the next two years. Both sides will launch a platform on climate action in the first half of 2026.
The collaboration extends to industrial decarbonization of heavy, energy-intensive industries, with the exchange of best practices on low-carbon material definitions for materials like steel and cement, while ensuring a level playing field. The two sides will share experiences on the design and implementation of India’s Carbon Credit Trading Scheme (CCTS) and the EU’s Emissions Trading Scheme (ETS), exploring further cooperation.
The partnership also aims to develop resilient, secure, and diversified critical minerals supply chains for energy transition and sustainable industrial ecosystems. Cooperation in the railway sector will focus on adopting advanced rail standards emphasizing high speed, decarbonization, digitalization, and automation of operation and maintenance activities. There will be cooperation to support sustainable ship recycling activities, especially through the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships and the inclusion of Indian ship recycling yards that comply with the European Union Regulation on Ship Recycling in its list.
While the EU's Carbon Border Adjustment Mechanism (CBAM) was a contentious issue during negotiations, the FTA opens the possibility for technical dialogue on CBAM. The EU sees CBAM as a compliance measure to accelerate decarbonization. India had initially taken a very radical stance on the EU's carbon border.
