BRICS Opposes EU Carbon Border Adjustment Mechanism
The BRICS Environment Ministers adopted a Joint Ministerial Statement on 18 August 2026 in New Delhi, opposing unilateral carbon-related trade measures such as the European Union’s Carbon Border Adjustment Mechanism (CBAM).
The statement was adopted at the 12th BRICS Environment Ministers’ Meeting, held under India’s BRICS Chairship 2026 and chaired by Union Environment Minister Bhupender Yadav.
What is the Carbon Border Adjustment Mechanism?
The Carbon Border Adjustment Mechanism (CBAM) is the European Union’s policy designed to put a carbon price on certain carbon-intensive goods imported into the EU.
Its objective is to address carbon leakage—a situation where production shifts from jurisdictions with stringent climate policies to countries with relatively less stringent carbon constraints.
The CBAM currently covers carbon-intensive products including:
- Iron and steel
- Aluminium
- Cement
- Fertilisers
- Electricity
- Hydrogen
Following a transitional reporting period, the definitive CBAM regime began on 1 January 2026. EU importers are required to account for embedded emissions in covered imports and surrender the required CBAM certificates.
Why are BRICS Countries Opposing CBAM?
BRICS countries have argued that unilateral carbon-border measures can function as trade barriers and disproportionately affect developing economies.
The broader concern is that countries have different historical responsibilities, development requirements and capacities to undertake climate action.
This connects with the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC) under the international climate framework.
For India, CBAM is particularly important because the European Union is an important market for carbon-intensive products such as iron, steel and aluminium.
BRICS Demands Greater Climate Finance
The Joint Ministerial Statement also emphasised the need for developed countries to provide adequate climate finance to developing economies.
BRICS ministers called for developed countries to at least triple adaptation finance by 2035 and emphasised greater availability of grants, concessional finance and non-debt-creating resources.
Adaptation finance supports measures that help societies adjust to the actual or expected impacts of climate change. These may include climate-resilient infrastructure, water security, agriculture, coastal protection and disaster preparedness.
12th BRICS Environment Ministers’ Meeting
The meeting took place at Bharat Mandapam, New Delhi, under India’s 2026 BRICS Chairship. Representatives participated from the 11 BRICS members—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the United Arab Emirates, Indonesia and Saudi Arabia. The meeting formed part of India’s broader BRICS agenda on environmental sustainability, climate action and cooperation among developing economies.
CBAM vs Carbon Tax
A domestic carbon tax directly imposes a price on greenhouse-gas emissions within a country. CBAM, in contrast, applies a carbon-related adjustment to certain imported products, taking into account their embedded emissions and relevant carbon prices already paid in the country of origin.
CBAM is therefore important from both climate-policy and international-trade perspectives.
Carbon Border Adjustment Mechanism: Exam-Oriented Facts
| Particular | Details |
|---|---|
| CBAM | Carbon Border Adjustment Mechanism |
| Introduced by | European Union |
| Definitive Phase | 1 January 2026 |
| Purpose | Carbon pricing of specified carbon-intensive imports |
| Major Products | Steel, iron, aluminium, cement, fertilisers, electricity and hydrogen |
| BRICS Meeting | 12th BRICS Environment Ministers’ Meeting |
| Date | 18 August 2026 |
| Venue | New Delhi |
| BRICS Chair 2026 | India |
| Indian Minister | Bhupender Yadav |
| BRICS Members | 11 |
| Key Climate Demand | Greater climate and adaptation finance |
- CBAM is an EU mechanism dealing with the embedded carbon emissions of specified imported goods.
- Its definitive regime began on 1 January 2026.
- CBAM is closely associated with the problem of carbon leakage.
- The 12th BRICS Environment Ministers’ Meeting was held in New Delhi under India’s 2026 Chairship.
- BRICS opposed unilateral carbon-border measures that can create barriers to international trade.
- BRICS called for developed countries to triple adaptation finance by 2035.
- Concessional finance is financing offered on more favourable terms than ordinary market finance.
- CBDR-RC stands for Common but Differentiated Responsibilities and Respective Capabilities, an important principle of international climate governance.
