India and Sweden are expected to sign a Memorandum of Understanding (MoU) on environment as Swedish Prime Minister Fredrik Reinfeldt visits India on Thursday for the 10th India-EU summit.

The MoU will cover climate change, clean technology, clean development mechanisms, environmental protection, environmental governance and air-water quality.

The MoU will lead to the setting up of a joint working group which will oversee implementation. Sources said the MoU is ready and final and it is expected to be signed during the visit.

Reinfeldt, who came to power in 2006 at the age of 40, will be attending the 10th India-EU Summit on November 6, since Sweden currently holds the EU’s rotating presidency. He will also hold bilateral talks with Prime Minister Manmohan Singh.

Sources said Sweden has offered to reduce its greenhouse gas emissions by 40 per cent by 2020 — the highest any government has made a public commitment about. There is also a possibility of a deal on the energy sector, possibly pertaining to nuclear power, sources said.

Meanwhile, the European Union on Wednesday raised the issues of child labour and environment again, asking India to address them in the Free Trade Area (FTA) negotiations between the two sides.