Published: 27 October 2025General
EU-India Strategic Agenda Advances CBAM and Carbon-Market Dialogue
EU and India adopted the Joint EU-India Comprehensive Strategic Agenda on 27 January 2026, building on the EU's 2025 New Strategic EU-India Agenda. The agenda guides cooperation on prosperity and sustainability, technology and innovation, security and defence, connectivity, global issues, and people-to-people cooperation.
On CBAM, official European Commission material records continued technical engagement with India, deeper exchanges on carbon trading markets and pricing mechanisms, and dialogue during CBAM's transitional period. It does not confirm a formal agreement linking India's Carbon Credit Trading Scheme with the EU Carbon Border Adjustment Mechanism or an exemption from carbon costs for Indian exporters. India's CCTS was launched under the Energy Conservation (Amendment) Act, 2022, within India's net-zero-by-2070 transition.
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Linked questionMedium
How many pillars does the New Strategic EU-India Agenda consist of?
Explanation · Correct answer CThe New Strategic EU-India Agenda is a five-pillar framework: Prosperity & Sustainability, Technology & Innovation, Security & Defence, Connectivity & Global Issues, and Enablers.
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.
