BRICS Call EU’s Carbon Tax 'Punitive, Protectionist', Say CBAM Hurts Developing Nations

BRICS countries have jointly opposed the European Union’s Carbon Border Adjustment Mechanism (CBAM), describing such carbon-linked trade measures as "unilateral, punitive, discriminatory and protectionist" and raising concerns over their impact on developing economies.

In a Joint Ministerial Statement adopted at the conclusion of the 12th BRICS Environment Ministers’ Meeting in New Delhi on August 18, the grouping said such measures were not in line with international law.

"We oppose unilateral, punitive, discriminatory and protectionist measures that are not in line with international law, such as carbon border adjustment mechanisms (CBAM), and express concern that such measures undermine efforts by countries, specifically the developing countries aimed at addressing the adverse impacts of climate change, increasing adaptive capacity and resilience," the statement read.

The statement was adopted under India’s BRICS Chairship 2026 and reflects a common position among the expanded 11-member grouping on carbon-related trade barriers.

The EU’s CBAM entered into force on January 1 and seeks to put a carbon price on certain emissions-intensive goods entering the 27-nation bloc, including iron and steel, aluminium and cement.

India has opposed the mechanism since it was proposed, arguing that it places an additional burden on businesses in developing countries because of the emissions embedded in their products.

The BRICS statement reiterated the importance of implementing the Paris Agreement in line with equity and the principle of common but differentiated responsibilities and respective capabilities.

It also stressed the need for greater access to finance, technology transfer and capacity-building support for developing countries to tackle environmental and climate challenges while pursuing sustainable development.

At the ministerial meeting, Union Environment Minister Bhupender Yadav said India’s BRICS Chairship was guided by a people-centric and implementation-oriented approach to environmental action.

He called for stronger cooperation among member countries on forest fire prevention, preparedness, early warning, response and post-fire recovery, while highlighting the importance of climate finance, adaptation and support for local communities.

The meeting concluded with the consensual adoption of four outcome documents, including principles for integrated landscape management, forest fire preparedness and response, and climate resilience through people-centric and community-based adaptation built on traditional knowledge, the Environment Ministry said in a statement.