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BRICS Fights EU Carbon Border Tax
18 Aug
Summary
- BRICS countries oppose EU's Carbon Border Adjustment Mechanisms.
- They call for increased international funding for developing nations.
- India's steel exports face significant compliance hurdles with CBAM.
BRICS countries have officially opposed the European Union's Carbon Border Adjustment Mechanisms (CBAMs), labeling them as "unilateral, punitive, discriminatory and protectionist" measures. This stance was declared in a joint statement on August 18, 2026, following the 12th BRICS Environment Ministers' Meeting in New Delhi, which was held under India's chairship.
The ministers specifically stated that carbon border measures like the EU's CBAM could jeopardize developing nations' progress in tackling climate change and building resilience. This opposition arises as the EU's CBAM entered its definitive phase on January 1, 2026, requiring importers of carbon-intensive products to account for embedded emissions. India, a key exporter of steel to the EU, is particularly exposed, with high-emission steel firms already showing reduced exports to the bloc during the reporting phase.
Furthermore, the BRICS ministers issued a strong call for developed countries to urgently increase adaptation finance. They urged this support to be "new, additional, predictable, adequate and accessible," preferably through grants and concessional finance. This demand is crucial ahead of the upcoming UN climate conference, COP31, in Turkey in November, as adaptation finance remains a critical, unresolved issue from previous talks.
