BRICS Criticism of the European Union’s Carbon Border Adjustment Mechanism (CBAM)

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BRICS Criticism of the European Union’s Carbon Border Adjustment Mechanism (CBAM)

Context

The European Union’s Carbon Border Adjustment Mechanism (CBAM) has emerged as an important issue in global climate and trade negotiations. At the 12th BRICS Environment Ministers’ Meeting held in New Delhi in August 2026 under India’s BRICS Chairship, member countries expressed concern over unilateral climate-linked trade measures. BRICS countries have argued that such measures can impose disproportionate costs on developing economies and may function as protectionist barriers under the guise of environmental regulation.

What is CBAM?

CBAM is a mechanism introduced by the European Union to impose a carbon price on selected carbon-intensive goods imported into the EU. Its objective is to ensure that imported goods bear a carbon cost comparable to that paid by European industries under the EU Emissions Trading System (EU ETS). The transitional phase began on 1 October 2023, during which importers were primarily required to report embedded emissions. The definitive regime became applicable from 1 January 2026, introducing financial obligations through CBAM certificates.

Products Covered