Published: 27 October 2025General
EU Council Endorses New Strategic EU-India Agenda; CBAM Dialogue Continues
On 20 October 2025, the Council of the European Union approved conclusions on a New Strategic EU-India Agenda, endorsing the Joint Communication by the High Representative and the European Commission. The agenda aims to deepen ties across prosperity and sustainability, technology and innovation, security and defence, and connectivity and global issues, with implementation enablers across the partnership.
Official EU material does not state that India's Carbon Credit Trading Scheme has been formally linked with the EU Carbon Border Adjustment Mechanism. The EU and India have instead described continued technical engagement on CBAM implementation, carbon trading markets, pricing mechanisms, energy efficiency, renewables and clean technology. India's CCTS was announced under the Energy Conservation Act, 2001 as amended in 2022, within India's wider net-zero-by-2070 transition.
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Frequently asked questions
What is the New Strategic EU-India Agenda and its five pillars?
The **New Strategic EU-India Agenda** is a **five-pillar framework** adopted by the EU and India for the next decade. The pillars are: **Prosperity & Sustainability, Technology & Innovation, Security & Defence, Connectivity & Global Issues, and Enablers**.
How does EU-India agreement link India's CCTS with EU CBAM?
The **New Strategic EU-India Agenda** includes a landmark agreement to link India's **Carbon Credit Trading Scheme (CCTS)** with the EU's **Carbon Border Adjustment Mechanism (CBAM)**, preventing **double taxation** for Indian exporters selling to the EU market.
What is India's Carbon Credit Trading Scheme CCTS?
India's **Carbon Credit Trading Scheme (CCTS)** was launched under the **Energy Conservation (Amendment) Act, 2022**, targeting net-zero by 2070. Under the EU-India Agenda, CCTS is linked with the EU's CBAM to avoid double carbon taxation on Indian exports.
What is EU CBAM Carbon Border Adjustment Mechanism?
The **EU Carbon Border Adjustment Mechanism (CBAM)** is the EU's carbon tariff on imports from countries with weaker climate policies. Linking India's **CCTS** with CBAM under the **EU-India Strategic Agenda** means Indian exporters won't face double carbon costs.
What areas of cooperation are covered under the New EU-India Strategic Agenda?
The **New Strategic EU-India Agenda** covers **semiconductors, 5G/6G standards, AI ethics, green hydrogen, Defence and Maritime Security Partnership**, CCTS-CBAM linkage, and more across five pillars: Prosperity, Technology, Security, Connectivity, and Enablers.
