India gears up for EU Green Rules

Ahead of finalizing a trade deal with the EU, India is updating its regulatory framework to meet stricter EU environmental norms. Key areas of focus include eco-friendly packaging, banning certain antibiotics in livestock, and ensuring deforestation-free sourcing through traceability and geo-tagging.

India is also enhancing waste processing standards to comply with the EU Waste Shipment Regulation. These steps aim to ensure continued market access and promote environmentally sustainable trade across sectors.

As India and the European Union (EU) edge closer to concluding a significant trade agreement, Indian authorities are working swiftly to adapt to a series of stringent new EU environmental regulations. These upcoming rules, set to take effect within a year, will impact a wide range of Indian exports and imports — from agricultural produce like coffee and spices to industrial materials such as scrap metal and waste paper. 

Leading this effort is the Union Ministry of Environment, Forests & Climate Change, which is coordinating with other ministries to overhaul existing regulations and implement mechanisms to meet the EU’s upcoming sustainability standards.

One of the most critical upcoming rules is the EU Packaging and Packaging Waste Regulation 2025/40 (PPWR), scheduled to be enforced from August 2026. This regulation aims to promote the use of recyclable and reusable materials. It introduces strict guidelines on the design, composition, and environmental footprint of packaging.

For instance, single-use plastics will be banned for packaging items such as pre-packed fruits, vegetables, condiments, sauces, and sugar. The regulation also limits excessive packaging by setting standards for weight and volume. Moreover, targets for recycled content have been established, with deadlines of 2030 and 2040, compelling exporters to include minimum levels of recycled material in all packaging. These requirements are likely to necessitate significant shifts across Indian industries.

Another major concern is the EU’s ban on non-therapeutic antibiotic use in livestock and animal products, as part of its broader focus on food safety and public health. The rule, introduced in 2018–19, prohibits the preventive use of antibiotics in animal husbandry unless medically necessary. Earlier this year, the EU warned India that exports of several animal-derived products could be restricted unless the country fully bans around 30 such antibiotics used in its livestock sector.

India’s previous advisory on the issue was found insufficient by EU authorities. In response, the Ministries of Health, Agriculture, and Commerce are now finalizing a comprehensive notification that would fully align Indian practices with EU requirements — a move crucial to preserving access to one of India’s major export markets for animal products.

The third major regulation is the EU Deforestation Regulation (EUDR), which will gradually take effect between December 2025 and June 2026. This rule aims to ensure that commodities imported into the EU — including coffee, cocoa, palm oil, soy, rubber, wood, and cattle-derived products — are not linked to deforestation or degradation of forests.

Exporters will be required to certify that their products are “deforestation-free” and provide full traceability, including geolocation data, to prove the origin of raw materials. To meet these conditions, the Environment Ministry, in coordination with state governments, is undertaking the geo-tagging of agricultural land—such as coffee plantations and vineyards—to establish traceability and meet EU regulatory requirements for exports.

In addition to export regulations, India is also preparing for the EU Waste Shipment Regulation (EU WSR), which will come into force in May 2026. The regulation mandates that any waste exported from the EU, must be treated in an environmentally responsible way, backed by a third-party audit system. India’s import of over 3.5 million tonnes of waste from the EU — ranging from iron scrap to tyre waste and paper — will require its rapidly growing waste processing industry to undergo significant adjustments to comply with the WSR. 

Referring to the updated WSR rulebook, the EU earlier this year requested India to outline the waste products it intends to import. India is understood to have proposed more than 26 categories of waste for continued import. Intensive efforts are underway to reinforce standards and enhance quality control systems in anticipation of the 2026 implementation deadline.

The European Union, with a GDP of US$ 18.4 trillion and a population of 448 million, stands as a leading force in global trade, exporting over US$ 2.9 trillion and importing more than US$ 2.6 trillion each year. In comparison, India’s US$ 3.9 trillion economy and 1.4 billion population saw goods exports of US$ 437 billion and imports of US$ 678 billion in the fiscal year 2024.

EU Environmental regulations represent a comprehensive framework for environmental sustainability, addressing issues such as waste management, emissions reduction, biodiversity preservation, and corporate responsibility. Their global reach means that businesses across the world—particularly in major trading partners like India—will need to modify their operations, packaging methods, and supply chain practices to meet the new EU standards.

These EU regulations, while challenging, also offer Indian industries a vital opportunity to upgrade their practices and embrace sustainable trade. In response, various Indian ministries are actively revamping policy frameworks, deploying advanced tracking technologies, and strengthening quality control systems to secure and expand India’s access to the EU market.