In a strong rebuke to European trade policy, BRICS nations have jointly condemned the European Union’s Carbon Border Adjustment Mechanism (CBAM), calling it a “punitive and discriminatory” tool that threatens the economic sovereignty and climate goals of developing countries. The denunciation came in a statement released during the BRICS summit in Rio de Janeiro on July 7.
The EU’s CBAM, introduced in 2023 and set for full implementation in 2026, imposes tariffs on carbon-intensive imports like cement, aluminum, and steel. While the EU claims the measure is meant to curb “carbon leakage” — the relocation of high-emission industries to countries with laxer regulations — BRICS countries argue it effectively penalizes the developing world for its lack of costly carbon pricing systems.
“We condemn and reject unilateral, punitive and discriminatory, protectionist measures that are not in line with international law, under the pretext of environmental concerns,” the BRICS leaders stated, referring specifically to CBAM and related climate-linked trade restrictions.
India and China have led opposition to CBAM, asserting that it violates international trade agreements and undermines the “common but differentiated responsibilities” principle enshrined in global climate frameworks. For nations like India, where industrial sectors are still transitioning toward green technologies, such tariffs present significant economic hurdles.
“These measures risk diverting away critical resources at a time when developing countries face a financial gap to pursue climate action and sustainable development,” the BRICS climate finance framework warned.
While the EU insists that CBAM aligns with WTO rules, critics point to its market-distorting effects. Analysis by S&P Global Commodity Insights shows that countries like Brazil, South Africa, and Turkey — heavily reliant on iron and steel exports to the EU — are particularly vulnerable.
Carbon pricing disparities make matters worse. As of July, EU carbon permits cost around $83.56 per metric ton of CO₂ equivalent, while China’s stood at just $10.36.
COP30 President Ambassador André Corrêa do Lago welcomed BRICS’ climate finance proposal, saying, “It offers concrete, synergistic strategies that advance the mainstreaming of climate in investment decisions… and recognizes the urgent need to unlock accessible, fair, and large-scale climate finance for developing countries.”
With growing concern that CBAM-style measures could be adopted by the UK, Norway, and Australia, the BRICS bloc is positioning itself as a united front demanding climate equity — not coercion.
