BRICS Reject EU Carbon Border Adjustment Mechanism
The BRICS nations have recently condemned the European Union’s Carbon Border Adjustment Mechanism (CBAM). This move came during their 2025 summit in Rio de Janeiro. The group criticised CBAM as a protectionist trade barrier that undermines the transition of developing countries to cleaner economies. The EU’s CBAM imposes import duties on goods from countries with higher carbon emissions than European standards. This has sparked a global debate on climate justice and trade fairness.
Carbon Border Adjustment Mechanism (CBAM)
CBAM is a tax on imports based on the carbon emissions involved in their production. It targets products like steel, cement, fertiliser, and aluminium. The EU introduced CBAM to prevent “carbon leakage,” where industries relocate to countries with lax emission norms. The mechanism aims to keep European industries competitive while encouraging global emission reductions. Importers in the EU must buy carbon certificates matching the emissions cost that would have been paid under EU rules.
Impact on Developing Countries
Developing nations such as India and China argue CBAM unfairly increases their export costs. This reduces their competitiveness in European markets. They claim CBAM violates international trade and climate agreements, including the Paris Agreement. These countries stress that CBAM ignores the principle of “common but differentiated responsibilities” which allows developing countries more flexibility in emission reductions. They view CBAM as a unilateral and discriminatory trade barrier.
BRICS and BASIC Opposition
BRICS, comprising nine major developing economies, issued a strong statement rejecting CBAM and similar measures. The BASIC group (Brazil, South Africa, China) has consistently opposed carbon border taxes at global climate forums. They warn such measures distort markets and deepen mistrust among nations. Their efforts at COP29 and earlier summits called for solidarity among developing countries to resist unfair shifts of climate responsibilities.
EU’s Perspective and Global Trade Dynamics
The EU defends CBAM as compliant with World Trade Organization (WTO) rules. It views the mechanism as a fair way to price carbon and promote cleaner production worldwide. CBAM’s phased roll-out began in 2023 and will be fully implemented by 2026. The EU hopes that CBAM will drive global emission reductions without harming its industries. Other countries like the UK and Canada are considering similar policies, signalling a trend towards climate-linked trade regulations.
Broader Climate-Related Trade Measures
Beyond CBAM, many regions have adopted climate-related trade rules. These include bans on imports from illegally harvested forests and incentives for clean energy technologies. The US Inflation Reduction Act offers subsidies that impact global clean tech markets. Climate change is accelerating protectionism driven by economic and strategic concerns. The dominance of China in renewable energy supply chains marks the shifting geopolitics of energy in the transition away from fossil fuels.
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