BRICS nations ‘condemn and reject' Europe's carbon-based import duties

Indian Express

08-07-2025

In in strongest statement on the subject yet, the BRICS nations have 'condemned and rejected' Europe's Carbon Border Adjustment Mechanisms (CBAMs), and other similar restrictive trade measures taken under the pretext of climate concerns, saying these undermined their development and transition to cleaner economy.
CBAM is an import duty imposed by the European Union (EU) on goods produced by processes that lead to more carbon emissions than domestic European manufacturers are allowed to emit. The ostensible reason is to check 'carbon leakage', but this has the effect of making items like steel or cement, from a country like India for example, more expensive, and thus less competitive, in the European markets.
Developing countries including India and China have been strongly critical of CBAM, calling it a unilateral and unfair trade barrier. They maintain this violates international agreements on both trade and climate, and have raised this issue at multiple international forums, including the annual climate conferences. But EU has been unrelenting. The statement by the BRICS nations, a group of nine large developing economies whose annual two-day summit concluded in Brazil on Monday, is another reiteration of the stand of the developing countries, though in a much stronger language.
'We condemn and reject unilateral, punitive and discriminatory, protectionist measures that are not in line with international law, under the pretext of environmental concerns, such has unilateral and discriminatory carbon border adjustment mechanisms (CBAMs), due diligence requirements with detrimental impacts on global efforts to halt and reverse deforestation, taxes and other measures …', the BRICS nations said in a statement on climate finance that is a new addition to the outcomes from this annual meeting.
The Leaders' Framework Declaration on Climate Finance is the result of the discussions held by a new contact group of ministers on climate change and sustainable development that was formed last year under Russia's chairmanship of BRICS.
The declaration said CBAMs, and other measures like restrictions on trade of forest goods, violated the provisions of the 1994 UN Framework Convention on Climate Change (UNFCCC) and agreements reached at other climate meetings. For example, Article 3(5) of UNFCCC calls upon countries to 'promote a supportive and open international economic system' that would lead to sustainable economic growth and development in all countries, particularly those in the developing world. Importantly, it also says that 'measures taken to combat climate change, including unilateral ones, should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade'.
The BRICS countries, in their latest statement said they want a full implementation of this provision in UNFCCC.
'We also oppose unilateral protectionist measures which deliberately disrupt the global supply and production chains and distort competition,' it said.
'We express concern that such measures, as well as unilateral economic and financial sanctions, may undermine BRICS countries' capacities to invest in their own just transitions and development priorities and risk diverting away critical resources at a time when developing countries face a financial gap to pursue climate action and sustainable development. We emphasise the importance of non-discriminatory access to trade and to climate finance for all countries and the need to address existing barriers,' it said.
The BRICS nations also asked the rich and developed world to fully deliver on their commitments under the UNFCCC and the 2015 Agreement, particularly those related to providing financial resources to the developing countries to take climate action. Developed countries are obligated to raise at least US$ 100 billion a year in climate finance meant for developing countries. They have promised to raise this to at least US$ 300 billion a year from 2035. But developing countries say this is too less and too late, considering that they already need at least US$ 1.3 trillion a year.
'We emphasize that although developing countries have contributed to a lesser extent to climate change, populations in these countries are the most vulnerable to its adverse impacts and the lesser equipped, including in terms of relevant infrastructure, to withstand its effects. Therefore, we highlight the need to increase the share of financing for adaptation, particularly public finance…,' the BRICS statement said.
The BRICS nations called on the developed world to urgently increase their financial contribution to adaptation projects, at least doubling the amount in 2019 by 2025, as has been agreed in climate conferences.
'We emphasise that adaptation finance must be primarily concessional, grant-based and accessible to local communities and should not substantially increase debt burdens on developing economies, while ensuring predictability, adequacy and direct access modalities that facilitate implementation of context-appropriate solutions aligned with national adaptation plans and priorities,' their statement said.