BRICS nations condemn EU carbon tax as punitive and protectionist

Environment ministers from the BRICS nations have issued a joint statement condemning the European Union’s Carbon Border Adjustment Mechanism (CBAM) as “unilateral, punitive, discriminatory and protectionist.” Following a meeting in New Delhi, the group argued that the carbon levy imposes unfair financial burdens on producers in the Global South and undermines their ability to invest in climate resilience and development.

The CBAM requires importers to purchase carbon certificates for products such as steel, aluminum, cement, fertilizers, and electricity to match the costs paid by European producers. While the EU maintains the system ensures a level playing field and complies with WTO rules, BRICS members—including India, China, and South Africa—warn it will increase costs for strategic industries and act as a trade barrier.

In addition to contesting the tariff, BRICS authorities called for an urgent increase in climate finance from developed nations. They emphasized that support for climate adaptation should be provided through grants and concessional financing to prevent increasing the debt burdens of developing countries.