Climate and energy security to top EU-India meet agenda

On February 27-28, the EU College of Commissioners will visit India for the first time

“On its own, India cannot solve anything regarding climate change, but the world can’t do anything without India as well,” said Ambassador Mohan Kumar, a former India Ambassador to France, reiterating that climate action and trade are strategic meeting points for the European Union and India.

Kumar was part of a webinar panel held ahead of the India-EU Commissioners meet scheduled for February 27-28. Being the first ever visit of the EU College of Commissioners together to India as well as the second ministerial meeting of the India-EU Trade and Technology Council (TEC), this meet holds immense importance for both India and the EU.

While PM Modi will be hosting European Commission President Ursula von der Leyen, bilateral ministerial meetings between the European Commissioners and their Indian counterparts will also take place, according to the Ministry of External Affairs.

Topping the agenda would be competitiveness, trade and industry, according to Linda Kalcher, Executive Director, Strategic Perspectives, who was part of the panel.

“This is a rare meet, and can be a bridge between global south and north. Trade and investments in clean tech, and energy security would be prioritised for reducing fossil fuel imports for the EU,” said Kalcher.

CBAM negotiations

Kalcher pointed out that the Free Trade Agreement (FTA) between India and the EU is important, and can be one of the discussion points, along with hatching out issues around Carbon Border Adjustment Mechanism (CBAM).

For the EU, it will possibly be looking to invest and have a green bond market, said Kalcher, adding that European nations have been reliable partners when it came to climate finance.

Furthermore, both regions can look to strengthen resilience and adaptation to combat common stresses like heat stress and droughts. According to Kalcher, for India, its renewable energy aspirations can further be transformed to green hydrogen and steel, through technology and money transfer from Europe, while Europe will look to capitalise on India’s growing renewable energy to shift away from fossil fuels imports, which are causing high prices and uncertainties for business, especially since the Russia-Ukraine conflict.

Julian Popov, Former Minister of Environment, Bulgaria, and another panelist, also stressed that energy security would be a key discussion point at the upcoming meet.

“Energy security, through expansion of renewables, energy efficiency, and research is needed,” said Popov, adding that China is exceeding its research and Development (R&D) spending over India and Europe.

To combat that, R&D in clean tech will lead to serious cooperation between leading research institutes in Europe and India, he said.

“Opportunities lie in EU-India industrial cooperation. We have to encourage not just trade, but proper cooperation, investments in both directions. India can be a major investor in European industries, especially clean tech,” said Popov.

Filling the climate leadership void

With the US putting red flags, and stopping funding for climate research, it becomes important for the EU and India to cooperate now with the changing geopolitical scenario, said panelist Aruna Sharma, Former Secretary, Ministry of Steel, Government of India.

“This is an opportunity for India to become a hub for AI, gaming, tech innovations. The other industrial connection is that capital goods come from the EU. Both parties can come to an agreement to manufacture it in an environmentally friendly way,” said Sharma, reiterating how such an arrangement would be mutually beneficial.

She further said that cooperative research should focus on hydrogen based fuels, and digital software and hardware. “Proceeds should be shared between countries – from where the EU is importing from, so that this money can be used for greening industries,” said Sharma.

The old international liberal order is on its last legs, feels Kumar. “The EU has a problem with the US. There’s a problem in Ukraine, and the tariff war is yet to begin. One possible hedge for EU’s bets would be China, which is also a systemic rival. Naturally, the EU will look to court India, which also doesn’t want to put all its eggs in one basket, and maintain good relations with the US, and EU. This brings about strategic convergence between India and the EU,” he said.

For this, FTA is critical, added Kumar.

However, for India, following a low carbon pathway is challenging.

“We cannot follow a low carbon pathway without climate finance and tech. Energy poverty is closely linked to economic poverty in India. We cannot muck up our energy needs in India, there are tough issues we have to face,” said Kumar.

The world will look closely as two of the biggest powerhouses sit down to chart a new path for climate and energy security towards the end of the month. And as Popov put it, hopefully the result will go beyond declarations and memorandums to deeper long-term engagement.