BRICS Nations Reject EU's Carbon Border Tax, Cite Unilateral and Discriminatory Nature

Strategic Insights -

The BRICS nations, comprising Brazil, Russia, India, China, and South Africa, have voiced strong opposition to the European Union's proposed carbon border tax, also known as the carbon border adjustment mechanism (CBAM). In a joint declaration, the group condemned the CBAM as "unilateral, punitive, and discriminatory protectionist measures" that would undermine their capacities to invest in just energy transitions and development priorities. This move comes on the heels of India's long-standing concerns about such measures, which were also reflected in the "Leaders' Framework Declaration on Climate Finance" adopted in Rio de Janeiro, Brazil.

Key Takeaways:

  • The BRICS nations have rejected the EU's proposed CBAM, citing its unilateral and discriminatory nature.
  • The CBAM, set to be implemented from next year, would impose a border tax on carbon-intensive goods entering the 27 EU nations.
  • The BRICS nations argued that such measures are "not in line with international law" and would disrupt global supply and production chains, distorting competition.
  • The Indian government has consistently opposed the CBAM, flagging its concerns during free trade agreement talks with the EU.
  • The CBAM imposes a tariff burden on developing countries, impacting their trade prospects, which has made large exporters like India and China oppose it.
  • The BRICS nations have also rejected the CBAM's environmental concerns pretext, arguing it would undermine their capacities to invest in just energy transitions and development priorities.

Statistics:

  • The EU's proposed CBAM would impose a border tax on carbon-intensive goods, including iron & steel, aluminum, and cement.
  • The CBAM is set to be implemented from next year, impacting trade prospects of developing countries.
  • The CBAM would impose a tariff burden on developing countries, with large exporters like India and China being particularly affected.
  • The Indian government has pursued a vigorous engagement with Twitter (X) since the blocking of Reuters and ReutersWorld on July 5, 2025.
  • Twitter (X) took over 21 hours to unblock Reuters and other URLs after repeated follow-up from the Indian government.

Sources:

  • "BRICS nations reject EU's carbon border tax" (Times of India)
  • "Leaders' Framework Declaration on Climate Finance" (Rio de Janeiro, Brazil, 2023)
  • "Twitter (X) blocked in India: What's next" (Times of India)
  • "Global GoVt Affairs team" (Twitter, @TwitterGov)