With the increasing recognition of the role of trade in contributing to environmental sustainability, the linkage between trade and environment is not only being explored at the multilateral level, but also at bilateral and regional levels. While developed countries have traditionally included commitments related to trade and environment in their free trade agreements (FTAs), developing countries are less willing to address the linkage in trade negotiations due to the fear of ‘green protectionism’. Noticeably, developing countries are evolving in their approach, and progressing towards the inclusion of environmental commitments in their FTAs with developed countries. While many developed countries pursue to address the linkage between trade and environmental issues in their trade agreements, the European Union (EU) portrays itself as committed to using trade agreements as tools to promote sustainable development, particularly in the context of its trade relations with developing countries. The EU has concluded ‘Trade and Sustainable Development’ (TSD) chapter in its trade agreements with several of its trading partners, including developing economies in the Asian region. Negotiations on FTA between the EU and many developing economies in the Asian region, such as India, Indonesia, Philippines, and Thailand are underway. Against this backdrop, this chapter seeks to examine two select FTAs of the EU with Indonesia and India (both at fairly advanced stage), and their approach towards inclusion of trade and environmental sustainability related commitments in FTAs, and discuss the potential implications for developing countries.