BRICS Nations Reject EU's Carbon Border Tax, Cite Protectionist Measures

Strategic Insights -

The BRICS nations have collectively voiced their opposition to the European Union's proposed carbon border tax, labeling it "unilateral, punitive and discriminatory protectionist measures." This stance is in line with India's long-held concerns, which were expressed during the recent free trade agreement talks with the EU. The group of 11 nations, including Brazil, Russia, India, China, and South Africa, voiced their displeasure in the "Leaders' Framework Declaration on Climate Finance" adopted in Rio de Janeiro. The carbon border adjustment mechanism (CBAM), set to be implemented next year, aims to impose a tax on carbon-intensive goods, such as iron & steel, aluminum, and cement entering the 27 EU nations. This proposed measure has been met with resistance from large exporters of such goods, including India and China, who fear it will disrupt their trade prospects.

Key Takeaways:

  • The BRICS nations have rejected the EU's proposed carbon border tax, citing protectionist measures that will harm developing countries' trade prospects.
  • The group of 11 nations, including India, China, and South Africa, have collectively expressed opposition to CBAM in the "Leaders' Framework Declaration on Climate Finance."
  • Developing countries face serious concern over pre-2020 mitigation gaps, and the BRICS nations urge developed nations to bridge these gaps by increasing their 2030 climate action targets and achieving net-zero emissions significantly ahead of 2050.
  • The BRICS nations have called upon developed countries to meet their goal of jointly mobilizing $100 billion per year through 2025 to address the needs of developing countries and achieve the finance goal of $300 billion per year by 2035.
  • The BRICS nations have condemned CBAM as "not in line with international law" and opposed "unilateral protectionist measures that deliberately disrupt the global supply and production chains."

Indian Prime Minister [name not mentioned in the source]

The carbon border tax, proposed by the EU, has been met with opposition from several nations.

Statistics:

  • 11 nations, including Brazil, Russia, India, China, and South Africa, have collectively expressed opposition to CBAM.
  • The EU's carbon border tax, CBAM, is set to be implemented next year.
  • The BRICS nations have called upon developed countries to meet their goal of jointly mobilizing $100 billion per year through 2025.
  • The BRICS nations are urging developed countries to increase their 2030 climate action targets and achieve net-zero emissions significantly ahead of 2050.

Sources:

  • The Brics nations rejected the European Union's proposed carbon border tax, calling it ôunilateral, punitive and discriminatory protectionist measuresö.

- "Leaders' Framework Declaration on Climate Finance"

  • India has long been opposed to such measures and flagged its concerns during the recent free trade agreement talks with EU.

- The Times of India, Vishwa Mohan