The BRICS Nations reject the EU’s proposed Carbon Border Tax—Brazil, Russia, India, China, and South Africa, along with six other members. They have described the CBAM as “unilateral, punitive, and discriminatory protectionist measures” that are being concealed under environmental concerns. The CBAM intends to impose border tariffs on carbon-intensive items entering the EU’s 27 member states, such as cement, steel, iron, and aluminium, starting in 2026. Developing nations, preeminent exporters such as China and India, are furious about this action, claiming it unfairly hinders their trade prospects and prevents investments in development and just energy transitions. The ‘Leaders’ Framework Declaration on Climate Finance,’ which was adopted at the BRICS summit in Rio de Janeiro on July 7, 2025, solidified that BRICS Nations reject the EU’s proposed Carbon Border Tax and demonstrated a united front against perceived trade barriers.

Critique of CBAM and Call for Global Equity

According to the BRICS countries, the CBAM distorts competition in favour of EU companies, breaches international law, and interferes with global supply networks. They denounce its unilateral character, contending that it places the onus on poorer nations that are more vulnerable but have historically contributed less to emissions. India, a strong opponent, has frequently voiced concerns during negotiations for a free trade agreement with the EU. The group also calls on industrialised countries to close the gap between their pledged and actual greenhouse gas reductions by highlighting their pre-2020 mitigation deficiencies. They stress that such policies must not impede the development of developing nations and call for aggressive 2030 climate targets and net-zero emissions long before 2050, ideally by 2030. This position emphasises the need to prioritise egalitarian climate action over protectionist measures.

Also Read: World Court Will Deliver Landmark Opinion On Climate Change On July 23

Demand for Enhanced Climate Finance

With BRICS countries pressuring rich nations to uphold their obligations under the 2015 Paris Agreement and the UNFCCC, financial support remains a divisive topic. They highlight ongoing financing deficits and demand that $100 billion be raised yearly through 2025, rising to $300 billion by 2035, to address the needs of poor countries. To prevent mounting debt loads, they also call for doubling adaptation funding from 2019 levels by 2025 and supporting grant-based, concessional aid. This demand will likely take center stage during the subsequent COP20 climate meetings in Lima, Peru, where BRICS aims to challenge the EU’s strategy and promote a more equitable global framework by ensuring that climate funding supports context-specific solutions that align with national interests.

Also Read: Eighteen EU Countries Urge To Simplify Deforestation Law And Delay Implementation