The BRICS group of major developing economies has strongly condemned the European Union’s Carbon Border Adjustment Mechanism (CBAM), calling it a discriminatory trade barrier that undermines global climate cooperation. The statement was issued during the BRICS summit in Rio de Janeiro, where member nations expressed concern over what they see as unilateral environmental measures disguised as trade policy.
CBAM, introduced by the EU in 2023, is a carbon tax on imported goods like steel, cement, and aluminum. The mechanism targets products manufactured in countries with less stringent carbon regulations, making them more expensive in European markets. While the EU claims the measure is designed to curb “carbon leakage”—the outsourcing of emissions-heavy industries to countries with looser climate norms—developing nations argue it unfairly penalizes them.
India, China, and other BRICS members argue that CBAM violates international trade and climate agreements. The group’s joint statement said, “We condemn and reject unilateral, punitive and discriminatory, protectionist measures that are not in line with international law, under the pretext of environmental concerns,” singling out CBAM and similar regulations that they believe hinder sustainable development efforts in the Global South.
The EU maintains that CBAM is compatible with World Trade Organization (WTO) rules and aims to level the playing field by applying the same carbon cost to imported goods as those produced within Europe. Under the mechanism, EU importers are required to purchase carbon certificates that reflect the emissions intensity of foreign-made goods. If a non-EU producer has already paid a carbon price domestically, that cost can be deducted.
The transitional phase of CBAM is currently underway and will continue through 2025, with full implementation expected from 2026.
As global decarbonization efforts accelerate, climate-linked trade policies like CBAM are emerging as flashpoints between developed and developing nations. While the EU sees the measure as essential to maintaining the integrity of its climate goals, BRICS countries warn that such tools risk deepening inequality and slowing down the global green transition.
Source
Green Hydrogen Sahi Hai
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Policy Watch
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