By: Piyush Verma
The European College of Commissioners’ visit to India in February this year, led by European Commission President Ursula von der Leyen, resulted in comprehensive engagement founded on two decades of the India-EU Strategic Partnership and more than three decades of collaboration under the India-European Community Agreement. Meanwhile, India-EU trade agreement negotiations are now entering their pivotal phase with the 14th round being held from October 6 to 10. The economic case for deeper India-EU cooperation is undeniable, which is also evident in a Joint Communication to the EU Parliament and The Council on a New Strategic EU-India Agenda released in September 2025. The EU is India’s second-largest trading partner in goods, with bilateral trade rising nearly 90% over the last decade, reaching €120 billion in 2024.
One area at the heart of India-EU collaboration — and one that will define it for decades to come — is energy. For India, installing 500 GW of renewable energy by 2030 is critical to securing its energy future while cutting emissions. For the European Union, building back its industrial sector and achieving climate neutrality by 2050 are central to its economic and security goals. In this context, the EU and India have a distinctive opportunity during the ongoing trade agreement negotiations to build a partnership that advances the global energy landscape. The EU and India have already taken steps in this direction by agreeing to host a Green Hydrogen Forum and an Offshore Wind Energy Business Summit, as well as by strengthening research collaborations on sustainable urban development, marine plastics, green hydrogen, and EV batteries. These initiatives represent the beginning of a more strategic and profound partnership that has the potential to revolutionize global energy cooperation.
Offshore wind and green hydrogen are two areas where this partnership can be particularly transformative. The EU, with its 35 GW of installed offshore wind capacity, has the technology and experience, while India, with currently no operational offshore wind farms but a vast 70 GW offshore potential enough to power 50 million homes, has the scale and cost-effective manufacturing capabilities. The country has set a target of installing 30 GW of offshore wind projects by 2030. By combining European expertise with Indian production strengths, joint ventures can accelerate offshore wind development in Tamil Nadu and Gujarat, establishing a supply chain that is independent of China.
Green hydrogen is emerging as another strategic frontier, with the EU’s Hydrogen Bank and India’s National Green Hydrogen Mission both aiming to scale up global production and trade. However, while the EU has introduced domestic certification for renewable hydrogen projects, the lack of an internationally standardized system for cross-border certification remains a key barrier — one that ongoing trade negotiations must urgently address to enable large-scale, reliable global hydrogen trade. Developing a mutually recognized framework to measure and verify sustainability attributes across diverse production methods and supply chains would strengthen India's position as a key supplier of green hydrogen to Europe. This would enable both economies to decarbonize heavy industries while ensuring seamless trade and regulatory alignment.
Energy security also hinges on critical minerals, which are essential for the clean energy transition. India is ramping up efforts to explore these minerals both domestically and offshore by fast-tracking regulatory approvals for mining projects, offering financial incentives for exploration, and promoting the recovery of critical minerals from overburden and tailings. As European battery manufacturers seek reliable and sustainable sources for key materials, an India-EU trade agreement could include provisions that encourage joint investment and cooperation in refining and processing infrastructure. Such collaboration would not only strengthen resource circularity but also reduce dependence on existing global supply chains, thereby enhancing resilience. To unlock this potential, establishing a joint R&D platform — linking the India-led International Solar Alliance with the EU’s Clean Industrial Deal — could drive innovation in critical mineral processing, battery recycling, and material recovery. The recently announced Horizon Europe research cooperation provides a strong foundation to accelerate these efforts.
At the same time, both sides must sustain focused dialogue on the EU’s Carbon Border Adjustment Mechanism (CBAM) and the future alignment of global carbon markets. The EU has begun CBAM implementation, seeking an effective, low-burden approach for industries and exporters. India continues to voice concern over CBAM’s impact on key energy-intensive sectors like steel and aluminium. With the 2030 climate targets fast approaching, both India and the EU must urgently cut emissions while maintaining energy security and economic growth. To realize these goals, the FTA should prioritize coordinated actions — such as aligning carbon pricing principles, strengthening clean technology transfer and joint R&D efforts, and advancing recognition of mutually accepted carbon accounting standards — thus shaping a more balanced and sustainable global trade regime.
Strengthening the EU-India energy partnership would unlock significant economic opportunities for both regions, fostering innovation, job creation, and strengthening security. How India and the EU align their energy strategies through their trade agreement will have far-reaching consequences for the world’s future. The India-EU partnership can set an unstoppable precedent for high-impact, innovative cooperation — demonstrating to the world that strategic partnership forged on science, technology, and mutual resolve is capable of delivering real, material progress.
Piyush Verma is Senior Fellow for the Energy & Climate program at ORF America.
