BRICS Countries Criticise Carbon Border Taxes, Citing Risks For Developing Economies And Trade

Environment and climate ministers from the BRICS grouping have rejected carbon border adjustment mechanisms (CBAM) as potentially discriminatory trade barriers for developing countries, including India. The position was outlined in a joint statement adopted at the conclusion of the 12th BRICS ministerial meeting in New Delhi, held under India's chairmanship and focused on resilience, innovation, cooperation and sustainability. For the first time, the BRICS statement directly identified CBAM as a significant trade concern for developing economies and said such measures are inconsistent with international law.

The ministers opposed what they described as unilateral, punitive, discriminatory and protectionist measures that are not aligned with international legal principles. The declaration specifically included carbon border adjustment mechanisms among the measures facing opposition from the grouping. CBAMs are designed to impose a carbon-related cost on certain imported goods based on their emissions, with the stated objective of preventing "carbon leakage". The mechanism is intended to ensure that companies do not shift carbon-intensive production to countries with less stringent climate regulations simply to avoid environmental costs.

However, developing nations have raised concerns that such measures could effectively function as trade barriers and place additional financial burdens on their exports. The BRICS ministers argued that unilateral measures of this nature could undermine the efforts of developing countries to address the effects of climate change. They stressed the importance of allowing developing economies to strengthen their adaptive capacity and resilience while pursuing economic development. The statement therefore linked the trade debate around CBAM with broader concerns about climate finance, development priorities and the differing responsibilities of countries in addressing climate change.

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The ministers' position reflects longstanding concerns among developing countries that climate-related trade measures imposed by developed economies could disproportionately affect exporters in emerging markets. Countries such as India have argued that climate policies should take into account differences in development levels and national circumstances. The BRICS statement reinforced the grouping's opposition to measures that members believe could restrict trade while placing additional pressure on developing economies. The meeting also produced agreements on sustainable lifestyles and consumption. For the first time, BRICS countries agreed to observe a BRICS Sustainable Lifestyle Week during the first week of November 2026.

The initiative is intended to encourage greater awareness of sustainable consumption and production and promote lifestyle changes that support environmental objectives. The ministers also endorsed a country-led BRICS Green Conclave. The initiative is expected to provide a platform for cooperation on sustainable consumption and production while taking into account individual countries' national priorities. The ministers emphasised the importance of advancing sustainable lifestyles without imposing a single model on all participating countries. The joint statement comes as climate policy and international trade become increasingly interconnected, with governments introducing measures designed to reduce emissions while protecting domestic industries.

For developing nations, however, the challenge is to meet climate objectives without allowing environmental regulations to become obstacles to economic development or market access. The BRICS position is likely to add weight to developing countries' concerns over the use of unilateral carbon-related trade measures. By specifically identifying CBAM as a problematic trade measure and questioning its consistency with international law, the grouping has placed the issue more prominently on its climate and economic agenda. The new initiatives on sustainable lifestyles and green cooperation, meanwhile, indicate that BRICS members are seeking greater collaboration on climate action while maintaining flexibility over their respective national priorities.

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