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Europe’s climate crisis threatens India’s urban resilience, risking funds, tech, and partnerships vital for its Viksit Bharat 2047 climate-smart growth vision.
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Recent reports of Europe being engulfed by an unprecedented heat wave—sweeping across France, Spain, Portugal, Italy, the United Kingdom (UK), and Türkiye—offer more than just a seasonal alert; they signal a deeper climate emergency for the continent. A recent study in Nature warns that extreme weather events, such as droughts and heatwaves, driven by climate change and amplified by human activities, are significantly reducing Europe’s forest carbon sinks—compromising one of its key climate buffers.
The European State of the Climate 2024 report, jointly published by the Copernicus Climate Change Service and the World Meteorological Organisation, reinforces this warning: Europe is now the fastest-warming continent, having recorded its second-warmest year on record in 2023.
Europe is now the fastest-warming continent, having recorded its second-warmest year on record in 2023.
However, this evolving crisis signals a pressing need for India. For over a decade, India and Europe have maintained a robust partnership on climate action, particularly at the urban level. From renewable energy and urban transport to clean technology and coastal resilience, European nations have played a pivotal role in shaping India’s climate-ready cities. Yet, as Europe faces mounting climate vulnerabilities, its priorities may inevitably shift inward—diverting funds and attention from global development to domestic adaptation. This raises pressing concerns for India’s cities, which are still in the early stages of building climate resilience. Can India continue to depend on Europe to co-design its urban transformation? And in light of these uncertainties, how can India diversify its global partnerships to safeguard its climate goals—particularly its ambition to build a Viksit Bharat by 2047, anchored in climate-smart urban growth?
India’s urban climate transformation depends heavily on predictable financial flows. The country is urbanising rapidly, with urban populations expected to reach 600 million by 2036. This surge brings with it enormous energy demands, infrastructure stress, and climate vulnerability. Despite being the world’s third-largest electricity producer, India recorded a 0.4 percent energy deficit in 2020—translating into frequent blackouts and an estimated Gross Domestic Product (GDP) loss of 1.9 percent annually due to power unreliability.
To address this crisis, India is banking on renewable energy. However, it is expected to face a US$1.25 trillion financing gap in this sector by 2030. Europe has been a strong partner here: the Indo-German Solar Partnership promotes grid-connected renewables; France’s PROPARCO has invested US$15 million in India’s solar sector. Yet, aid cuts are accelerating. Last year, France slashed €742 million from its Official Development Assistance (ODA), with the 2025 Finance Act further slashing ODA allocations by 39 percent. The Netherlands has followed suit, rechannelling funds toward economic integration and migration policy priorities.
The shift from grant-based aid to investment-driven funding frameworks signals a broader recalibration of Europe’s global posture. These transitions could reduce Europe’s ability to support India’s energy transition—particularly in emerging technologies including green hydrogen and offshore wind, which are risk-prone but crucial for long-term decarbonisation.
India must act quickly to diversify. Countries such as Australia have already expressed interest in collaborating on solar PV (Photovoltaic) and hydrogen. Through the India-Australia Green Hydrogen Taskforce and the India-Australia Renewable Energy Partnership, city-level investments and research collaborations can be unlocked. Meanwhile, Vietnam’s booming renewable energy sector presents partnership opportunities through the India-Vietnam Comprehensive Partnership.
India’s cities remain critically underprepared for compounding climate risks. The first half of 2025 served as a reminder: Bengaluru was paralysed by floods in May 2025; Guwahati and Kolkata battled record-breaking heat and humidity, and delayed monsoons offered little relief. While missions such as the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Smart Cities have made progress, India still suffers from a more-than-US$100-per-capita deficit in urban infrastructure spending.
Europe has historically helped fill this gap. The European Investment Bank (EIB), the European Union’s (EU) lending arm, has financed electric metro systems in Bengaluru, Kanpur, Pune, and Agra. A €300-million loan approved in 2024 for Bengaluru’s suburban rail is projected to cut emissions by 42 percent. Additionally, the International Urban and Regional Cooperation (IURC) programme has supported city-to-city collaboration—such as Surat’s partnership with Rotterdam to convert a landfill into a water-sensitive public plaza that recharges groundwater.
However, these kinds of programmes rely on long-term funding and trust. With budget reallocations looming in Brussels and other European capitals, the continuity of such projects is under threat. India must seek alternative infrastructure financing. Institutions such as the Asian Development Bank (ADB) and the New Development Bank (NDB) are already involved—Imphal’s US$70 million waterbody rejuvenation project, financed by NDB, is one such example.
Furthermore, India should capitalise on the Coalition for Disaster Resilient Infrastructure (CDRI), which it leads globally. Through the CDRI Urban Infrastructure Resilience Programme, India can forge cross-border partnerships and secure funding for real-time monitoring technologies, early warning systems, and green infrastructure in its cities.
India’s 7516-km coastline is home to ecologically rich cities, including Mumbai, Kochi, and Thiruvananthapuram. These cities contribute 60 percent of the country’s Foreign Direct Investment (FDI) inflows. However, they are also on the frontlines of rising sea levels, saltwater intrusion, and marine pollution. Kochi’s worsening marine contamination stemming from industrial discharge and chemical-laden agricultural runoff has begun to threaten both ecosystems and human health.
Europe has supported India’s coastal climate action through platforms such as the Global Covenant of Mayors for Climate and Energy (GCOM), where Indian cities engage with global peers on mitigation and adaptation. The India-EU Trade and Technology Council has launched projects to tackle marine litter and build circular economies around ocean waste.
Nonetheless, with Europe now forced to deal with collapsing glaciers and underwater metro stations in Germany, such projects risk being deprioritised.
Here, India must re-energise its Act East Policy and focus on Southeast Asia. The Association of Southeast Asian Nations (ASEAN) has growing leadership in marine governance. Vietnam, for instance, has a national action plan on marine plastic litter that defines agency roles across government tiers. India could launch trilateral initiatives with Vietnam and other ASEAN partners to build capacity and share best practices in urban coastal governance.
Europe’s climate backsliding—though understandable—cannot be the undoing of India’s urban future. If European aid weakens, India must prepare itself with a new map of global partners—one that includes Australia, Southeast Asia, the Gulf, and climate funds such as the Green Climate Fund and Global Infrastructure Facility.
India’s climate resilience is no longer just a development goal—it is a national imperative tied directly to the Viksit Bharat 2047 vision. With cities being engines of economic growth, centres of energy transition, and homes to hundreds of millions, their climate vulnerability is a threat to India’s long-term prosperity.
At the 2023 G20 Summit, India rightly positioned itself as a bridge between the mitigation-focused Global North and the adaptation-focused Global South. This dual identity is a diplomatic asset. As COP30 approaches in Belem, Brazil this year, India must lean into this leadership—advancing proposals, convening coalitions, and brokering solutions that reflect the diverse needs of urban resilience.
Europe’s climate backsliding—though understandable—cannot be the undoing of India’s urban future. If European aid weakens, India must prepare itself with a new map of global partners—one that includes Australia, Southeast Asia, the Gulf, and climate funds such as the Green Climate Fund and Global Infrastructure Facility.
Climate change is no longer tomorrow’s risk—it is today’s reality. India’s cities must be future-proofed not just through cement and steel, but through strategy, solidarity, and diversified support.
Aparna Roy is a Fellow and Lead, Climate Change and Energy, at the Centre for New Economic Diplomacy at the Observer Research Foundation.
Alankrita Dutta is a Research Intern at the Observer Research Foundation.
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Aparna Roy is a Fellow and Lead Climate Change and Energy at the Centre for New Economic Diplomacy (CNED). Aparna's primary research focus is on ...
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Alankrita Dutta is a Research Intern at the Observer Research Foundation. ...
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