The partnership between the European Union and India has the potential to be one of the ‘defining partnerships of this century.’ The recent conclusion of a Free Trade Agreement (FTA) and the accompanying ‘Joint India-European Union Comprehensive Strategic Agenda’ under score its relevance. As the third and fifth largest global economies respectively and as major emitters, the EU and India carry a particular responsibility to lead on climate action. Their partnership must make climate issues a key priority to realise its ‘green potential’ and to drive sustainable growth and resilience. Five areas are of particular importance in this regard: 

1. Financing: India requires trillions for a lower-carbon development pathway. To support it, the EU and its member states must move beyond traditional budget lines. This requires cham pioning international levies on high-emission sectors and exploring wealth taxes on ultra-rich individuals to unlock new fiscal space. Furthermore, the EU should take a leading role in re forming the International Financial Architecture (IFA), ensuring that Multilateral Development Banks (MDBs) align with the Paris Agreement and that the Global Gateway functions as a dem ocratic alternative focused on equitable development objectives. 
2. Clean tech manufacturing: The EU and India both seek to hedge against Chinese market dominance and ensure supply chain security while pursuing growth and development strate gies. To do so, the partnership must follow a realistic approach that does not exacerbate ine quality, scales up and institutionalises just transition efforts, and integrates social safeguards. A Clean Trade and Investment Partnership (CTIP) could complement the Free Trade Agree ment by focusing on local value creation through support for MSMEs. This should be under pinned by an innovation partnership, promoting links between European and Indian hubs. 
3. Industrial decarbonisation: To bridge the remaining irritations around the EU’s Carbon Border Adjustment Mechanism (CBAM), the EU must refine its diplomatic strategy, proactively consult stakeholders, and potentially recycle CBAM revenues to support industrial transfor mation in the Global South. Cooperation on green hydrogen remains a focus of Indo-Euro pean climate cooperation, but it must be grounded in a transformative vision. Efforts should prioritise domestic needs and the export of green materials rather than energy carriers alone. 
4. Adaptation: As both regions face increasingly ferocious climate impacts, adaptation must be elevated to a distinct and equal pillar of the partnership. With accruing losses in India and the EU, there is significant room for South-North cooperation and mutual learning. Coopera tion on disaster management and Early-Warning-Systems as well as research is important. Joint work on improving availability and access to empirical data will be essential to bridge the adaptation gap. 
5. Expanding the scope: To be truly strategic, the partnership must expand its reach. This requires an enabling environment for civil society, whose role is currently underdefined and limited. Meaningful participation of civil society organisations is vital for democratic legiti macy. Furthermore, the EU should support Indian leadership within the UNFCCC and expand engagement with India-led plurilateral initiatives. By exploring these synergies, the EU and India can forge a leading green South-North partnership that translates promise into practice.

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The description was extracted from the executive summary of the policy brief.