Climate
The Climate Perspective of the India–EU Landmark FTA
The India–EU free trade agreement is more than a market-opening deal. It marks a strategic shift where climate policy, geopolitics, and global trade converge across nearly a third of the world’s population.
The long-awaited free trade agreement (FTA) between India and the European Union is being billed as a trade breakthrough. But viewed through a climate and geopolitical lens, it is also a signal moment in how two major economic blocs are attempting to stabilise growth, supply chains, and decarbonisation pathways in a fractured global order.
According to a note by Climate Trends, the FTA arrives at a time when tariffs, carbon taxes, and industrial policy are increasingly weaponised, making the deal as much about strategic alignment as about market access.
The scale of the agreement is hard to miss. Together, India and the EU touch the lives of nearly 1.9 billion people — about 1.4 billion in India and close to 500 million in the EU. Combined, they account for around 30 percent of the world’s population and roughly 25 percent of the global economy, making this one of the most consequential bilateral trade pacts in recent years.
India and the EU together account for 11–12 percent of global trade
In trade terms, the partnership is already substantial. India and the EU together account for 11–12 percent of global trade, amounting to nearly $11 trillion out of an estimated $33 trillion global trade volume. Bilateral trade between the two currently stands at €124 billion ($136 billion) and is expected to double within five years.
India’s Commerce Minister Piyush Goyal and Ursula von der Leyen, President of the European Commission, have described the agreement as the “mother of all deals”.
Trade, geopolitics and climate converge
Beyond headline numbers, the agreement reflects a deeper geopolitical recalibration. With renewed uncertainty around US trade policy and rising economic nationalism globally, both India and the EU are seeking predictable, rules-based partnerships.
For India, the FTA provides diversification away from volatility in Western markets while strengthening its role as a manufacturing alternative under “China Plus One” strategies. For the EU, it secures long-term access to one of the world’s fastest-growing major economies at a time when supply chain resilience and strategic autonomy are becoming policy imperatives.
“The deal signifies strategic alignment at a moment of high geopolitical uncertainty,” said Aarti Khosla, Founder-Director of Climate Trends. “The EU has been the reigning power and India is a rising power. Their coming together, especially on climate goals, green industry and clean technology, signals where money and markets are going,” she said, adding that the agreement offers renewed space for multilateralism shaped by strategic choices rather than pure ideology.
Climate quietly embedded in the trade pact
While the FTA is not explicitly framed as a climate treaty, climate considerations run through the broader India–EU relationship. Cooperation under the Clean Energy and Climate Partnership (CECP), signed in 2016, continues across renewable energy, energy efficiency, and clean hydrogen.
Green hydrogen, in particular, has emerged as a key point of convergence. India has positioned itself as a potential exporter to Europe, backed by a growing domestic electrolyser manufacturing ecosystem. India is targeting $10 billion in foreign direct investment for 10 GW of electrolyser capacity by 2030, a scale that could help meet Europe’s future clean fuel import requirements, the Climate Trends note highlighted.
This cooperation is further reinforced through the EU–India Trade and Technology Council (TTC), which focuses on clean-energy technologies, regulatory interoperability, and joint research and development. India’s presence at European Hydrogen Week in Rotterdam last year underscored these ambitions.
Carbon borders and friction points
One of the most sensitive issues shaping the climate-trade interface is the EU’s Carbon Border Adjustment Mechanism (CBAM) — the world’s first carbon tariff on imports. Once fully implemented in 2026, CBAM could impose costs of $2–4 billion annually on Indian exporters in carbon-intensive sectors.
According to the Climate Trends note, while the FTA does not neutralise CBAM, it creates negotiating space. India has secured a most-favoured nation clause, ensuring it will not be treated less favourably than other trading partners under EU carbon rules. The agreement also includes support for Indian exporters to meet climate-related trade requirements, including cooperation on recognising India’s carbon pricing and verification systems, and assistance to cut emissions.
Beyond tariffs
The strategic significance of the deal lies in its long-term implications. From New Delhi’s perspective, the FTA could boost exports by up to $50 billion by 2031, particularly through services and diversified markets. For Brussels, it offers a pathway to build clean-energy industries without creating concentrated dependencies.
“The EU is already India’s largest trading partner. Conclusion of the FTA, long in the making, is a landmark moment,” said Madhura Joshi, Programme Lead – Asia at E3G. “It can be the building block for something more ambitious — a strategic partnership that goes beyond trade, providing a stable anchor for growth, resilience, and energy security,” she said. “A deeper partnership with clean technology as its foundation would strengthen global clean-energy supply chains,” she added.
Backing trade with finance, the European Investment Bank has already committed €2 billion towards climate-resilient infrastructure in India through the Coalition for Disaster Resilient Infrastructure, signalling that the EU is willing to support its trade ambitions with patient capital.
Taken together, the India–EU FTA represents more than a tariff-cutting exercise. As the Climate Trends note argues, it is both a hedge against protectionism and a springboard for climate-integrated growth — one that links nearly a third of humanity and a quarter of the global economy in an era of uncertainty.
Why the India–EU FTA Raises Eyebrows in a Trump World
While the India–EU free trade agreement is not explicitly targeted by Washington, it intersects with several trade and climate positions closely associated with Donald Trump, making it strategically relevant in the event of a second Trump presidency.
1. A powerful bloc outside US leverage
Together, India and the EU represent nearly 30 percent of the world’s population, around 25 percent of the global economy, and over 11 percent of global trade. Large, rules-based economic alignments formed outside US leadership have historically drawn Trump’s opposition, as they dilute Washington’s ability to use bilateral pressure.
2. Reduced impact of US tariff threats
Trump has relied heavily on tariffs as a negotiating and enforcement tool. The India–EU FTA gives both partners greater market diversification, reducing dependence on the US and limiting the effectiveness of future tariff-based pressure.
3. Climate-linked trade rules Trump opposes
The agreement unfolds alongside the EU’s Carbon Border Adjustment Mechanism (CBAM), which links climate policy directly to trade. Trump has consistently criticised carbon pricing and climate regulations, viewing them as economic constraints. India’s willingness to engage with EU climate-linked trade norms signals a shift towards a global trade architecture shaped by climate rules — even without US leadership.
Why it matters
The India–EU FTA reflects a move toward a multipolar, climate-integrated trade order. While Trump may not challenge the deal directly, its underlying logic runs counter to his preference for bilateral, tariff-driven negotiations — and could face friction in a more protectionist global environment.
Climate
Weather, Not Just Emissions, Driving PM2.5 Pollution in Indian Cities: Study
A new Climate Trends report finds weather conditions can alter PM2.5 levels in Indian cities by up to 40%, calling for season-specific reforms in India’s National Clean Air Programme (NCAP).
A new analysis of India’s urban air quality has revealed that weather conditions can significantly influence pollution levels, sometimes masking the real health burden faced by residents. The report, released by Climate Trends, argues that India’s clean air policies must account for seasonal and meteorological factors to effectively tackle particulate pollution across major cities.
The study analysed Central Pollution Control Board (CPCB) monitoring data from 2024–2025 across six major cities — Delhi, Patna, Kolkata, Mumbai, Chennai, and Bengaluru — and found that meteorological conditions alone can shift pollution levels by up to 40 percent even without changes in emissions.
Researchers say the findings highlight a major gap in India’s National Clean Air Programme (NCAP) and recommend that the upcoming Phase-III reforms include season-specific targets, weather-adjusted evaluation metrics, and dynamic action plans triggered by atmospheric conditions.
Delhi’s extreme winter pollution
The report highlights Delhi as continuing to experience the most severe pollution crisis in the country. The capital recorded the highest annual average PM2.5 levels among the cities analysed and experienced prolonged periods of “Severe” and “Emergency” air quality days.
A particularly alarming finding is that Delhi recorded zero clean air days during winter, despite apparent annual improvements in pollution metrics.
According to the researchers, this discrepancy arises because annual averages can hide seasonal pollution spikes that occur during unfavourable weather conditions such as low wind speeds and high humidity.
“This study shows that a 20–30% reduction in annual PM2.5 does not translate into winter air-quality compliance in stagnation-prone cities like Delhi and Patna, where over 70% of days fall under low-wind, high-humidity meteorological regimes. NCAP Phase-III must therefore adopt season-specific targets, meteorology-triggered interventions, and airshed-level management frameworks to achieve meaningful public-health gains,” Aarti Khosla, Founder and Director of Climate Trends, said in a statement.
Weather plays a decisive role
The report emphasises that air pollution is not simply an “emissions-only” problem. Instead, it is strongly shaped by how emissions interact with atmospheric conditions.
Periods of atmospheric stagnation — characterised by low wind speeds and high humidity — prevent pollutants from dispersing, allowing them to accumulate near the ground and intensify exposure levels for urban populations.
Sagnik Dey, Head of the Centre for Atmospheric Sciences at IIT Delhi, explained the scientific basis for this pattern.
“The persistence of PM2.5 exceedances is strongly associated with sub-1 m/s wind regimes and elevated relative humidity across northern cities, where stagnation episodes sustain disproportionately high exposure levels. Ventilation efficiency emerges as the dominant determinant of inter-city variability. However, current NCAP evaluation frameworks primarily assess observed concentration changes without explicitly accounting for meteorological modulation, potentially leading to distorted interpretations of policy effectiveness. Integrating meteorological regime analytics is therefore essential to ensure a scientifically robust and equitable Phase-III evaluation.”
The study also estimates that simply shifting from stagnant atmospheric conditions to well-ventilated ones could reduce PM2.5 levels by 35–40 percent, demonstrating the powerful role of weather in shaping urban air quality.
Emerging patterns across Indian cities
Beyond Delhi, the report identifies several emerging trends across India’s major urban centres.
Southern cities such as Bengaluru and Chennai, historically considered less polluted, are beginning to show signs of winter-time air quality deterioration, signalling a new vulnerability. Meanwhile, Mumbai and Chennai recorded increases in annual pollution levels in 2025, suggesting that pollution challenges are expanding beyond seasonal spikes into year-round concerns.
Patna continues to face an intensifying crisis, emerging as the second-most polluted city after Delhi, driven in part by persistent atmospheric stagnation across the eastern Indo-Gangetic Plain.
In contrast, Bengaluru stands out for maintaining relatively stable and lower pollution levels, reflecting what researchers describe as “structural air-quality resilience.”
Kolkata’s complex pollution dynamics
Kolkata presents a unique case where meteorology interacts strongly with local pollution sources.
Dr. Abhinandan Ghosh of IISER Kolkata said meteorological conditions play a key role in winter pollution episodes in the city. “As a community of atmospheric scientists, we have long cautioned against a simplistic rat race to replicate Western PM₂.₅ benchmarks, for the Indian subcontinent is endowed with its own meteorological idiosyncrasies, complex topography, and friable alluvial soils that elevate baseline particulate concentrations. The report vindicates this standpoint: in Kolkata, it is not emissions alone but the capricious tyranny of winter boundary-layer dynamics – attenuated mixing heights and enfeebled dispersion – that engenders the most deleterious pollution episodes.”
Professor Abhijit Chatterjee of the Bose Institute pointed to biomass and waste burning as major contributors to winter pollution in the city.
“Amongst several sources, at the current scenario, biomass and waste burning are the major concern in Kolkata especially in winter. The high load of PM2.5 exceeding national standards in winter, primarily due to these two sources which accumulate near the surface because of low dispersion and ventilation coefficients.”
Need for season-specific policies
The study concludes that India’s clean air strategy must move beyond a uniform annual target system and instead adopt seasonally calibrated and meteorology-aware policies.
Experts argue that incorporating weather dynamics into pollution management would help policymakers better assess the effectiveness of interventions and design more realistic mitigation strategies.
Without such reforms, the report warns, improvements in annual averages may continue to mask severe seasonal pollution episodes that pose serious health risks to millions of urban residents.
Climate
More Shade for the Rich: Study Exposes Global Urban Heat Inequality
New MIT research shows how wealthier neighbourhoods enjoy more tree shade, exposing global heat inequality and offering solutions for fairer urban cooling.
As extreme heat becomes a growing global concern, one of the most effective cooling tools remains remarkably simple: trees. Research has long shown that greater tree coverage in cities helps reduce surface temperatures, improve public health outcomes, and make walking more comfortable in high heat.
Yet a new international study led by researchers at MIT reveals that access to this natural relief is far from equal. Tree cover — and the shade it provides — varies drastically within cities, closely tracking neighborhood wealth.
“Shade is the easiest way to counter warm weather,” said Fabio Duarte, an MIT urban studies scholar and co-author of the study, in a media statement. “Strictly by looking at which areas are shaded, we can tell where rich people and poor people live.”
The research team analyzed sidewalk shade in nine cities across four continents: Amsterdam, Barcelona, Belem, Boston, Hong Kong, Milan, Rio de Janeiro, Stockholm, and Sydney. Despite major differences in climate, wealth, and urban form, every city showed the same trend: affluent areas consistently enjoy more tree-shaded sidewalks.
Duarte noted that this imbalance was striking even in cities globally recognized for greenery. “When we compare the most well-shaded city in our study, Stockholm, with the worst-shaded, Belem in northern Brazil, we still see marked inequality,” he said in a media statement. “Even though the most-shaded parts of Belem are less shaded than the least-shaded parts of Stockholm, shade inequality in Stockholm is greater. Rich people in Stockholm have much better shade provision as pedestrians than we see in poor areas of Stockholm.”
The findings were published in the journal Nature Communications, in a paper titled Global patterns of pedestrian shade inequality. The research team includes scholars from Hong Kong Polytechnic University, the Amsterdam Institute for Advanced Metropolitan Solutions, and members of the MIT Senseable City Lab.
A Global Look at Uneven Shade
To quantify shade, the team used satellite imagery and detailed urban economic data to measure sidewalk coverage on both the summer solstice and the hottest day each year from 1991 to 2020. They assigned each neighbourhood a score between 0 and 1, with higher numbers indicating better shade.
Cities differed sharply in total tree cover — for instance, Stockholm’s neighbourhoods often score above 0.6, while large portions of Rio de Janeiro fall below 0.1. But the inequality within each city was consistent: the wealthiest neighbourhoods always had the greatest shade.
Even in cities known for strong environmental planning, disparities remained. “In rich cities like Amsterdam, even though it’s relatively well-shaded, the disparity is still very high,” said Lukas Beuster, a study co-author. “For us the most surprising point was not that in poor cities and more unequal societies the disparity would be notable — that was expected. What was unexpected was how the disparity still happens and is sometimes more pronounced in rich countries.”
Not all trends were uniform. Some cities, such as Barcelona and Milan, featured lower-income neighborhoods with strong shade coverage. Still, across the global sample, economic status remained a powerful indicator of access to cool, walkable streets.
Why Shade Matters — and What Cities Can Do
Sidewalks became the focal point of the study because they are crucial public spaces used daily by commuters, especially those without access to air conditioning or private vehicles. As cities worldwide face rising temperatures, researchers argue that shade must be treated as essential infrastructure.
“When it comes to those who are not protected by air conditioning, they are also using the city, walking, taking buses, and anybody who takes a bus is walking or biking to or from bus stops,” Duarte explained in a communication from MIT. “They are using sidewalks as the main infrastructure.”
Given the scale of disparity, the researchers suggest one clear strategy: target tree planting along public transit routes, where pedestrian activity is highest and where lower-income residents are most likely to walk.
“In each city, from Sydney to Rio to Amsterdam, there are people who, regardless of the weather, need to walk,” Duarte said . “Therefore, link a tree-planting scheme to a public transportation network. … If you follow transit, you will have the right shading.”
Beuster added that cities should think of urban trees as functional assets, not just aesthetic ones, emphasizing their central role in cooling and public health.
Duarte further stressed the importance of prioritizing shade where people actually move through the city. “It’s not just about planting trees,” he said in a media statement. “It’s about providing shade by planting trees. If you remove a tree that’s providing shade in a pedestrian area and you plant two other trees in a park, you are still removing part of the public function of the tree.”
“With increasing temperatures, providing shade is an essential public amenity,” he added in a media statement. “Along with providing transportation, I think providing shade in pedestrian spaces should almost be a public right.”
Climate
When Hillary Clinton Makes a Case for Climate Action from the Global South
At Mumbai Climate Week, Hillary Clinton urges Global South-led climate action, resilience finance innovation and stronger AI governance.
The Jio World Convention Centre in Mumbai, India’s financial capital, was buzzing with climate ambition this week. Start-ups showcased climate-centred products, philanthropic foundations exchanged notes with impact investors, young founders pitched adaptation tools for heat-stressed cities at the Mumbai Climate Week.
Amid the climate-tech demonstrations and policy exchanges, Hillary Clinton’s address stood out for its strategic clarity — positioning the Global South not merely as a beneficiary of climate action, but as its architect.
Her message was less about symbolism and more about systems — about resilience funds, insurance products, clean cooking, AI governance, and the moral responsibility of both North and South in confronting a warming world.
India as a Climate Laboratory
Clinton placed India squarely at the centre of her remarks — not as a victim of climate change, but as an innovator.
“One of our projects which I wanted to mention to you is creating a climate resilience fund to create a place where philanthropic dollars and corporate dollars and the individual dollars could be aggregated to come up with ideas to assist people who are out there working,” she said at the Mumbai Climate Week.
Through the Clinton Global Initiative (CGI), that idea has already taken shape in India.
Working with Humanity Insured — a not-for-profit backed by major insurance firms — and in partnership with SEWA(Self-Employed Women’s Association), CGI launched a parametric insurance product designed for informal women workers vulnerable to extreme heat. The concept is simple but transformative: when temperatures cross 39°C, women who cannot work a full day can claim compensation for lost income.
“As I speak right now, we’ve got this product up and going. India is the example. It’s the model,” Hillary Clinton said. “We now have 500,000 insurance holders here in India. And India will be the model for the rest of the global south because of this CGI commitment.”
The insurance scheme reflects a larger shift in climate discourse — from abstract mitigation targets to hyper-local resilience. For informal workers, climate change is not a policy debate; it is lost wages when heat makes construction sites unworkable.

Clinton framed the model not merely as philanthropy but as smart economics. “This is not only a good thing to do. It is smart. It is a new market.”
The Global South as Agenda Setter
Repeatedly, she argued that climate solutions must emerge from the regions most affected.
“We have to focus attention on solutions in the places that are clearly now most affected by climate change… the front lines of the fight against global climate change is right here in the Global South.”
While acknowledging the historical responsibility of industrialised nations, she did not shy away from noting that emerging economies must also accelerate their transition to clean energy. Pollution, she stressed, is not an abstract carbon statistic — it is a health crisis.
“When I talk about fossil fuels, I’m not just talking about climate change. I’m talking about the pollution that goes in the air in Delhi or Beijing. I’m talking about clear evidence that pollution is impacting our health… particularly the health of our children.”
Climate, she insisted, is inseparable from public health.
Philanthropy Beyond Charity
One of the sharper threads in her address was directed at philanthropy. Charity alone, she argued, cannot solve structural crises.
“If you want to feed a hungry person, give them a fish. If you want to end hunger, teach them to fish,” she said, invoking the familiar metaphor to argue for systemic reform.
The climate resilience fund is intended as catalytic capital — seed funding that aggregates philanthropic, corporate and public resources to unlock scalable models. Adaptation, in her framework, must sit alongside mitigation.
Hillary Clinton also pointed to the massive intergenerational transfer of wealth underway globally, urging that it be channelled into long-term climate solutions rather than short-term relief.
AI, Energy and the Next Disruption
Though the week’s focus was climate, Clinton ventured into another domain shaping the future: artificial intelligence.
AI, she acknowledged, could optimise renewable grids and enable hyper-local climate projections. But she warned against uncritical adoption.
“This technology is also consuming vast amounts of power, water, infrastructure… We would be naive not to recognize the potential threats that AI and its development is causing.”
She raised pointed questions about data centres’ energy and water demands, labour market disruptions, and the political influence of tech giants.
“The people running these companies are the richest people in the world… They want to shape the future… Governments need to be ready to demand answers.”
Drawing lessons from social media’s regulatory lag, she cautioned against waiting a decade to understand AI’s harms. “Let’s figure out how we can deal with that ahead of time and try to shape it rather than shape the life.”
“We inherited it. And with that inheritance… should come a sense of responsibility”
In a country rapidly expanding both its renewable capacity and digital infrastructure, the intersection of AI and climate carries particular urgency.
A Personal Case for the Planet
Beyond policy and programmes, Hillary Clinton’s speech carried a deeply personal note. She spoke of hiking the day after the 2016 US election — an act of reconnecting with nature in a moment of political upheaval.
“I find it so reinvigorating… now we know that spending time in nature… actually does help reset your brain,” she said.
Her environmentalism, she explained, stems from reverence. “We inherited it. And with that inheritance… should come a sense of responsibility.”

Climate change, she warned, will not only intensify heatwaves and wildfires but amplify migration, conflict and political instability. Ignoring it is neither economically nor strategically rational.
“If we don’t take care of our world today, it will cost us more money. It will cost us more death and destruction. It will cost us more political conflict.”
A Message to Young Innovators
Among the audience were young founders and activists — many from India’s growing climate-tech ecosystem. Clinton’s closing words were directed at them.
“Do not give in to the naysayers and the cynics. Do not doubt that you are engaged in historic, important work.”
Hillary Clinton acknowledged that global climate finance often bypasses grassroots innovators, particularly women in the Global South. That imbalance, she implied, must change.
“Keep knocking on doors, making your arguments, showing up… ideas are going to come from everywhere and they’re going to be good ideas.”
Mumbai Climate Week, positioned as a first-of-its-kind platform in India, was organised by Project Mumbai with support from organisations including IDFC First Bank and Monitor Deloitte.
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