At the 2025 BRICS summit in Rio de Janeiro, member nations strongly opposed the European Union’s Carbon Border Adjustment Mechanism (CBAM), calling it a protectionist move that unfairly targets developing economies. They argued that CBAM hampers their transition to cleaner technologies by increasing export costs and violating the principles of climate justice.
What is CBAM?
CBAM is a carbon tax imposed by the EU on imports like steel, cement, aluminium, and fertilisers. It aims to prevent “carbon leakage” by taxing goods from countries with looser emission norms, ensuring EU industries remain competitive while promoting global carbon reductions.
Concerns of Developing Nations
Countries like India and China have criticised CBAM as discriminatory and inconsistent with the Paris Agreement. They stress the importance of “common but differentiated responsibilities”, which grants developing nations more leeway in their climate commitments.
BRICS and BASIC Stand United
The BRICS group and BASIC nations (Brazil, South Africa, India, China) reiterated their opposition to CBAM at COP29 and other climate platforms, warning that such unilateral measures damage global trust and widen economic divides.
EU’s Justification
The EU maintains that CBAM complies with WTO norms and supports fair carbon pricing. Introduced in 2023, the mechanism will be fully enforced by 2026. Other countries like the UK and Canada are exploring similar tools, reflecting a broader shift toward climate-based trade policies.
Wider Climate Trade Trends
Beyond CBAM, nations are adopting various climate-linked trade regulations—ranging from deforestation-related bans to clean energy subsidies. The US Inflation Reduction Act and China’s dominance in green tech are reshaping global climate geopolitics.
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