BRICS New Delhi Declaration Opposes EU Carbon Border Tax and Unilateral Tariffs

At the BRICS Summit hosted in New Delhi, member nations unanimously adopted a joint declaration strongly criticizing the European Union's Carbon Border Adjustment Mechanism (CBAM). The grouping stated that green trade barriers violate international climate principles and harm economic growth in developing countries.

The Carbon Border Adjustment Mechanism is a tariff imposed by the EU on carbon-intensive imports like steel, cement, and fertilizers. Developing countries argue that CBAM undermines the principle of Common But Differentiated Responsibilities (CBDR) enshrined under the UNFCCC framework by penalizing lower-income manufacturing nations.

Key details for competitive exams include the CBAM scope, which targets six carbon-heavy sectors entering the EU market. India and Brazil led the effort within BRICS to highlight how unilateral tariff structures distort international trade principles established under the World Trade Organization (WTO).

For UPSC and SSC aspirants, this development provides critical material for Mains questions regarding climate economics, green protectionism, WTO disputes, and India's multilateral strategy against non-tariff trade barriers imposed by developed economies.