Empowering a Greener Future
India and EU's Path to a Sustainable Future
“India and the EU are uniting to shape a sustainable future, blending India’s dynamic energy needs with the EU’s leadership in clean technology. “
The global challenge of climate change requires a strong collaboration between nations to develop and deploy clean technologies. The partnership between India and the European Union is a prime example of such collaboration, aiming to combine India’s growing energy needs with the EU’s advanced cleantech innovations.
EU’s Industry Transition Initiatives
The EU has been at the forefront of global efforts to combat climate change, with several initiatives designed to reduce greenhouse gas emissions and transition to a low-carbon economy. Among these, the Fit for 55 Package is a revolutionary policy aiming to reduce the EU’s greenhouse gas emissions by 55% by 2030 . This ambitious target is supported by mechanisms like the Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM), which create financial incentives for industries to reduce their carbon footprints.
ETS requires companies to purchase allowances for their emissions, effectively capping the total emissions within the EU. This system incentivizes companies to innovate and reduce their emissions to lower costs. CBAM is designed to prevent carbon leakage by imposing a tax on imported goods from countries with less stringent climate policies. This can impact Indian exports to the EU, particularly in carbon-intensive industries, but also encourages India to adopt cleaner technologies.
The Green Deal Industrial Plan is another significant initiative, committing over $270 billion to green industries within the EU . This plan is backed by several funding streams, including Horizon Europe and the Innovation Fund, which together mobilize billions of euros for research, innovation, and modernization of energy infrastructure. The European Institute of Innovation and Technology also plays a crucial role by fostering collaboration between businesses, universities, and research centres on climate technology projects.
Additionally, the REPowerEU plan aims to achieve a 42.5% share of renewable energy by 2030 , focusing on reducing dependency on fossil fuels and diversifying energy supplies. These initiatives underscore the EU’s commitment to leading the global transition to a sustainable future.
Clean Tech Leadership in EU Companies
EU companies are global leaders in cleantech, with expertise spanning renewable energy, energy storage, electric vehicles, and carbon capture technologies. In India’s green transformation, leading companies are playing pivotal roles across various renewable energy sectors. Siemens Gamesa and Vestas are expanding wind energy, while Enel Green Power and Iberdrola drive solar advancements. Northvolt and Saft are pioneering sustainable battery technologies, crucial for supporting the energy grid. In the EV sector, Volkswagen Group and ABB are aligning with India’s EV goals through significant investments. Climeworks and LanzaTech are innovating in carbon capture, and ITM Power and NEL ASA lead in green hydrogen production, all contributing to India’s sustainable energy future.
India’s Climate and Energy Goals
India, the world’s third-largest emitter of greenhouse gases , has set ambitious climate goals despite its developmental challenges. India’s climate strategy is anchored in the Panchamrit goals, which include achieving 500 GW of non-fossil energy capacity by 2030 and reducing carbon emissions by 1 billion tonnes. By 2070, India aims to achieve net-zero carbon emissions, demonstrating its commitment to long-term sustainability.
Key initiatives under India’s climate strategy include:
- National Energy Storage Mission: Aims to promote domestic manufacturing of energy storage systems and achieve 50-60 GW of energy storage capacity by 2030
- Electric Vehicle Policy: Targets a 30% penetration of EVs in the automotive market by 2030, supported by initiatives like the FAME India scheme and the National Green Hydrogen Mission
- Waste-to-Energy Programme: Focuses on setting up 500 waste-to-energy plants to manage municipal solid waste, contributing to cleaner cities and renewable energy generation
India’s approach reflects a balance between meeting the energy needs of its growing population and transitioning to a low-carbon economy. The collaboration with the EU, particularly through shared technologies and funding, is vital in achieving these goals.
India’s Climate Partnerships with EU Countries
India has forged healthy collaborations with various EU countries, each contributing significantly towards a greener world. Noteworthy among these are the India-Norway partnership focusing on the blue economy and offshore wind energy, the India-Netherlands collaboration on water management and sustainable agriculture, and the India-Sweden alliance centered on green technologies and urban sustainability. Additionally, India’s environmental cooperation with Italy, digital and clean energy integration with Finland, renewable energy focus with Denmark, and the extensive projects under the Indo-German Energy Forum all underscore the shared commitment to advancing global climate goals.
Collaboration and Way Forward
The collaboration between India and the EU in clean technology stands as a model for global partnerships aimed at tackling climate change, combining the EU’s advanced technological expertise and financial resources with India’s ambitious climate goals. This partnership is creating significant opportunities in areas like renewable energy, energy storage, and green hydrogen, with a focus on expanding wind and solar projects, developing advanced battery technologies, and enhancing infrastructure for electric vehicles. Additionally, sectors such as carbon capture, water management, and sustainable agriculture are poised for growth, driven by innovative EU companies. By forming joint ventures, sharing technology, and investing in research and development, both regions are well-positioned to make substantial progress in reducing emissions and promoting a sustainable and resilient energy future.
