BRICS Nations Reject EU's Carbon Border Tax As Discriminatory And Unilateral

(MENAFN- KNN India) New Delhi, Jul 9 (KNN) The BRICS nations have formally rejected the European Union's proposed carbon border adjustment mechanism (CBAM), denouncing it as "unilateral, punitive and discriminatory protectionist measures" in a declaration adopted Monday in Rio de Janeiro, Brazil.

The group argued that the measure undermines their capacity to invest in energy transitions and development priorities while being implemented "under the pretext of environmental concerns."

The opposition to CBAM was prominently featured in the 'Leaders' Framework Declaration on Climate Finance issued following the BRICS meeting.

The carbon border tax, scheduled for implementation next year, would impose tariffs on carbon-intensive goods such as iron and steel, aluminum and cement entering the 27 EU member states.

India has consistently opposed such measures, raising concerns during recent free trade agreement negotiations with the European Union.

The BRICS nations stated that CBAM violates international law and condemned what they characterised as "unilateral protectionist measures which deliberately disrupt the global supply and production chains and distort competition."

Major exporters of affected goods, particularly India and China, have maintained their opposition due to the expected tariff burden and potential impact on trade prospects with developing countries.

Beyond trade concerns, the BRICS declaration expressed "serious concern" over pre-2020 mitigation gaps by developed countries.

The group urged wealthy nations to bridge the gap between their emissions reduction commitments and actual achievements while calling for increased 2030 climate action targets.

The declaration specifically requested that developed countries achieve net-zero emissions significantly ahead of the 2050 target, preferably by 2030.

Climate finance emerged as a central theme ahead of upcoming climate talks in Belem, Brazil, later this year.

The BRICS nations called upon developed countries to fulfill their commitment to jointly mobilise USD 100 billion annually through 2025 for developing country needs, while achieving a new target of USD 300 billion per year by 2035.

The declaration noted that substantial gaps remain in fulfilling the financing needs identified by developing countries.

The group also pressed developed nations to increase their collective provision of climate finance for adaptation, demanding at minimum a doubling of 2019 levels by 2025.

This emphasis on climate finance reflects broader tensions between developed and developing nations over responsibility for addressing climate change and supporting global energy transitions.

(KNN Bureau)

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