Introduction
Climate change and environmental degradation pose an existential threat. South Asia is reported to be one of the most climatic vulnerable regions in the world. It is not a surprise that India is dedicated towards building a cohesive and independent green technology sector. The European Union has been a pioneer in leading the world in clean and green technology and aspires to grow and maintain that influence. For India, the sector provides it an opportunity to “kill two birds with one stone”. This is so because green technology will not only help India in managing and mitigating the grave consequences of climate change but green sector technology provides a great opportunity for India to develop its manufacturing sector. With India’s economic potential and technological prowess and Europe’s leadership in research and development (R&D), a stage is set for a natural partnership for both regions to burgeon their relations while leading the world towards a sustainable future.
Why Green Tech?
The rise in global temperature, erratic rainfalls, floods, and wildfires have become a new normal. Every passing day warrants the urgency towards prevention and mitigation of climate change to guarantee a better life for future generations. This critical junction in the world’s history has necessitated a technological revolution centred around green and clean technologies. Over the years, we have witnessed the rise of innovation and the adoption of green technologies across the world. Hence, this emerging wave is set to wield a profound impact on the global economy.
It has been widely reported that developing nations and regions such as South Asia are the most vulnerable to the consequences of climate change as they lack the resources and capabilities to adapt and mitigate climatic events effectively. Hence, in the present and future, a dire need is going to merge for innovative and affordable green technology. Countries such as India, with abundant labour and technological prowess, have been rallying toward the development and adoption of green technologies. More so with plans to lead the Global South, India needs to actively engage in this technological revolution. While India has labour and skills, its efforts fall short due to the lack of funds and germinal research and development. Henceforth, complementary collaboration in this sector becomes essential for India to strengthen its green technology sector and be a prime member of the movement.
Europe in Green Tech
The European Union (EU) is known to be the most proactive when it comes to green and climate technologies. The European Green Deal has set ambitious and stringent goals for the continent. It strives to transform Europe into the first carbon-neutral continent. The deal aims to make Europe carbon neutral by 2050 and boost inclusive economic growth through green technology and creating sustainable industries and transportation. According to the United Nations Conference on Trade and Development, three of the top five countries on their level of preparedness to start using frontier green technologies are Sweden, Switzerland, and the Netherlands.
The Net-Zero Industry Act (NZIA) is a part of the EU's push to guarantee the leadership of the Union in not just cutting greenhouse gas emissions, but also in manufacturing the equipment required. The Act sets a benchmark for European manufacturers to produce 40% of the EU’s annual needs. Eight strategic technologies have been announced by EU leaders including solar, sustainable biogas, electrolyzers and fuel cells, wind, carbon capture technologies, and storage. Batteries and storage, heat pumps and geothermal, and grid technologies. However, the Act highlights Europe’s high dependence on China’s green tech imports. The country provides over 90% of the EU’s photovoltaic wafers which has become troublesome for the local manufacturers in Europe.
India-Europe Green Tech Collaborations
India is one of the fastest-growing economies in the world and has established itself as a global hub for the energy sector especially renewable energy, Information and Communication Technology (ICT), innovations, startups, etc. The Indian government’s allocation for the Ministry of New and Renewable Energy has increased from 102 million in 2023-24 to 191 million in 2024-24, providing a shot in the arm to clean energy companies and startups. It underscores a concerted effort towards a more holistic energy transition pathway along with being mindful of energy security, economic growth, and, employment generation. It may not be evident yet, but Indians are proactively moving towards innovation and development of green technology. Europe/UK and India are extremely complementary in their resource endowment making the two regions very natural partner. All the Indian startups require is training and funding. The European Union and its companies can provide both things.
European Investment Bank (EIB), the lending arm of the European Union plans to invest about €1 billion in India’s renewable energy sector. The first phase of funding is expected to see an investment of €500 million. India is the largest investment destination of EIB outside Europe. According to EIB’s vice president Kris Peeter, “What India does for the climate is not only important for India but also the rest of the world”. He realises the potential India holds and postulates that with Europe’s financing and experience in infrastructure, a lot of important projects can be undertaken in India. One of the two dominant sectors that may receive an impetus are green hydrogen and solar panels. India and France have also planned to launch a fund aimed at supporting startups and climate-centric innovations in the Indo-Pacific, according to a report in Mint. EU-India collab to promote EV Battery Recycling Startups in India.
Startups are the future that would dedicate the future of not just the two regions but also the world. In the recent times, European states and corporations have shown interest in the green technology startups springing in India. Beyond the interest, multiple Indian green tech startups have received funding from national as well as private enterprises. Founded in 2012, GPS Renewables has completely reinvented conventional biogas plants. The company offers a biogas plant named BioUrja with production efficiency in the range of 70 kgs of LPG equivalent per ton of waste. It produces double the biogas without the need for water. In 2020, the startup saw an investment by Triodos Investment Management, a venture capital fund based out of the Netherlands.
ReNew, a decarbonisation solutions company, obtained $1 billion in debt funding from Societe Generale, a European bank, to assist in the progression of its array of strategic energy transition initiatives, both domestically in India and on a global scale. The collaboration between the two is a perfect example of the future cooperative projects the two regions can formulate and implement. The MoU signed by the two organisations postulates for the Societe Generale to offer financial and advisory solutions for the next three years. They will also utilise their combined expertise to enhance collaboration on large-scale energy projects, such as solar and wind power, complex renewables, green hydrogen, energy storage, and manufacturing of solar modules.
Sea6 was founded in 2010 with an aim to harness the world's oceans to create environmentally sustainable, commercially viable products and solutions to improve agriculture and food production. It aspires to create biodegradable replacements for plastics and replace fossil fuels as a source of energy and chemicals. With a focus on the global aquaculture industry, a German-based BASF Venture Capital and a Dutch investment fund Aqua-Spark invested in Sea6 Energy Pvt. Ltd. According to the Managing Director of BASF Venture Capital, Markus Solibieda, Sea6’s integrated business model provided it an edge along with its extensive experience in the field of biotechnology. The company can cultivate and transport fresh red seaweed, globally, due to its patented mechanised cultivation technology. The company has also been working on the development of bioplastics and biofuels based on red seaweed. Cultivation of red seaweed as biomass on a large scale opens up the opportunity for crude-dependent industries to transition to renewable feedstocks. Along with sustainable production and transportation, the company also offers red seaweed at competitive pricing which can enable products like Bioplastics and Biofuels.
EDFI ElectriFi (Electrification Financing Initiative) invested in Freyr Energy, a startup providing tech-enabled rooftop solar solutions in its Series B funding round. Prior to this, the company had raised ₹27 crore in a Series A round of funding led by Netherlands-based impact investment fund C4D Partners, and seed funding from another Dutch investment company, Doen Participaties. Freyr plans to use the funds to expand product development and marketing teams to continue scaling rapidly. ElectriFI is managed by EDFI Management Company which is an investment facility funded by the European Union. It invests in early-stage private companies and projects that increase access to and supply of sustainable energy in developing countries. So far, the fund, which has a corpus of more than €275 million, has deployed €124 million across 46 investments in 22 countries.
Energy efficiency startup Smart Joules has bagged a debt funding of $8 Million from the Denmark government’s Investment Fund for Developing Countries (IFU) under a green strategic partnership between India and Denmark. The country has set up an India-specific special facility through a government agency for funding projects. According to Freddy Svane, Danish envoy to India, the Danish government is in talks with the Ministry of Finance to build a pipeline that can facilitate the development of rules and regulations, setting the direction to attract investments.
Global Cause
Presently, almost every part of the world is grappling with some or the other consequences of climate change. Climate change is not a myth or exaggeration anymore with the Global South faring worse, globally. Collaboration in the green technology sector can enhance India’s international recognition as a proactive and responsible participant in global efforts to combat climate change. This can strengthen India’s influence in international forums and global climate policies. Europe is revered for its strong climate and sustainability actions, with joint efforts, India too can bolster its position in global climate diplomacy. The collaboration would demonstrate the leadership of both regions in addressing environmental challenges while influencing global climate agreements. With the transfer of technology, the sector will also foster greater mutual understanding and goodwill, reinforcing better diplomatic ties with the Global South nations. Along with this, the tensions between the EU and China are tightening as Europe hits Chinese EVs with the highest-ever tariffs yet.
Conclusion
As the world grapples with the realities of climate change, the collaboration between India and Europe stands as a testament to the power of international partnerships. This partnership holds the potential to not only mitigate the effects of climate change but also transform economies by creating new industries and inspiring new regulations centered around green technologies. By leveraging each other’s strengths - India’s growing innovation ecosystem and the European Union’s leadership in green technology- the collaboration can pave the way for a global sustainable future. The green technology sector provides both the regions to turn the adversity of climate change into opportunities for growth, resilience, and leadership in global sustainability efforts.
References
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This Article is written by EICBI fellow Harshita Mahajan
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