The EU–India New Strategic Agenda 2025:
The European Union and India, under the New Strategic EU–India Agenda (2025) adopted in October, agreed to link the Indian Carbon Market (ICM) with the EU’s Carbon Border Adjustment Mechanism (CBAM).
- The EU–India New Strategic Agenda (2025) is a forward-looking framework jointly adopted by the European Union (EU) and India, outlining a comprehensive roadmap to strengthen cooperation for the next decade.
- It builds upon the 2020 EU–India Strategic Partnership: A Roadmap to 2025, expanding collaboration into emerging areas like green transition, digital governance, defence, and global connectivity.
- The primary goal of the agenda is to elevate the EU–India relationship into a transformative global partnership by:
- Promoting sustainable prosperity and climate action through joint clean energy transitions.
- Enhancing strategic autonomy and security cooperation in the Indo-Pacific and beyond.
- Deepening technological and digital collaboration to shape ethical and inclusive innovation.
- Strengthening people-to-people ties, education, and mobility for mutual growth.
- Establishing institutional and regulatory frameworks for equitable global governance and trade.
Key Features of the EU–India New Strategic Agenda (2025):
- The agenda is structured around five key pillars — (i) Prosperity & Sustainability, (ii) Technology & Innovation, (iii) Security & Defence, (iv) Connectivity & Global Issues, and (v) Enablers across pillars — ensuring holistic engagement across economic, political, and social dimensions.
- A landmark feature is the decision to link India’s Carbon Credit Trading Scheme (ICM) with the EU’s Carbon Border Adjustment Mechanism (CBAM), enabling carbon price deductions at EU borders — a milestone in North–South climate cooperation.
- Focus on renewable energy, green hydrogen, sustainable finance, and carbon neutrality pathways through technology transfer and co-investment.
- Includes joint initiatives in semiconductors, 5G/6G standards, AI ethics, quantum computing, and data protection frameworks aligned with privacy and transparency principles.
- Establishes a Security and Defence Partnership, promoting joint naval exercises, cybersecurity collaboration, and maritime domain awareness in the Indo-Pacific.
- Supports infrastructure connectivity through the EU’s Global Gateway Initiative and India–Middle East–Europe Economic Corridor (IMEC) to enhance regional trade and supply chain resilience.
