SDG 9: Industry, Innovation and Infrastructure | SDG 13: Climate Action
Institutions: Ministry of Commerce and Industry | Ministry of External Affairs
The European Commission and the High Representative presented a new “global climate and energy vision” on October 16, 2025, defining the European Union’s strategy to secure its place in global markets and become the industrial powerhouse for the clean transition. The EU aims to use diplomacy and trade instruments to drive a global clean industrial revolution and proposes to ramp up its clean technology manufacturing capacity to reach 15% of the global tech market.
This external dimension builds upon the Clean Industrial Deal and focuses on promoting standards, advancing a rules-based international order, and expanding mutually beneficial partnerships like Just Energy Transition Partnerships and Green Alliances. In the context of India, this strategy comes as the EU has recently agreed to adjust the carbon price paid by Indian exporters under the Carbon Border Adjustment Mechanism (CBAM). Furthermore, the EU’s Global Gateway strategy is actively supporting India’s transition, with EIB Global recently committing over ₹5,200 crore in financing for sustainable transport, water, and green energy initiatives.
The EU’s explicit ambition to dominate 15% of the global clean tech market creates competitive pressure for India, necessitating a strategic and accelerated decarbonization of its own heavy industries to mitigate CBAM risks while leveraging the substantial EIB/Global Gateway financing for critical infrastructure projects.
What is the Clean Industrial Deal (CID)? → The Clean Industrial Deal (CID) is the European Union’s comprehensive internal economic strategy, launched in February 2025, designed to boost European industrial competitiveness while achieving decarbonization goals. The CID aims to support energy-intensive industries and clean-tech manufacturers by lowering energy costs, reducing regulatory complexity, and mobilizing over €100 billion in funding to secure a competitive, resilient, and climate-neutral industrial base.
Relevant Question for Policy Stakeholders: How will India align its domestic Carbon Credit Trading Scheme with EU standards to maximize deductions for exporters under the revised CBAM framework?
Follow the full news here: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_2389