{"id":47611,"date":"2025-07-10T21:21:33","date_gmt":"2025-07-10T15:51:33","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=47611"},"modified":"2025-07-29T11:33:42","modified_gmt":"2025-07-29T06:03:42","slug":"brics-condemns-eu-cbam","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/10-07-2025\/brics-condemns-eu-cbam","title":{"rendered":"BRICS Condemned European Union\u2019s CBAM"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Environment, GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>BRICS nations have <strong>\u201ccondemned and rejected\u201d the Carbon Border Adjustment Mechanisms (CBAM) of the European Union (EU)<\/strong> and similar restrictive trade measures, saying they undermine their transition to a cleaner economy.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>CBAM<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CBAM is an <strong>import duty <\/strong>imposed by the European Union (EU) on <strong>goods produced by processes <\/strong>that lead to<strong> more carbon emissions than domestic European manufacturers<\/strong> are allowed to emit.&nbsp;<\/li>\n\n\n\n<li>It is introduced to put a \u201c<strong>fair price\u201d on carbon-intensive goods<\/strong> imported from <strong>non-EU countries.&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>It is to <strong>create a level playing field<\/strong> with EU companies that account for their carbon emission through the <strong>bloc\u2019s Emission Trading System (ETS).<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Application:<\/strong> To be imposed from January 1, 2026, on six items: steel, aluminium, cement, fertilizer, hydrogen, and electricity.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"cedad7\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"721\" height=\"333\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/BRICS-Condemned-European-Unions-CBAM.webp\" alt=\"brics condemned european union\u2019s cbam\n\n\" class=\"not-transparent wp-image-47632\" style=\"--dominant-color: #cedad7; width:497px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/BRICS-Condemned-European-Unions-CBAM.webp 721w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/BRICS-Condemned-European-Unions-CBAM-300x139.webp 300w\" sizes=\"auto, (max-width: 721px) 100vw, 721px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns of Developing Nations<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Environmental Compliance:<\/strong> Discussions on CBAM are happening under the Trade and Technology Council (TTC), with India and developing nations arguing that environmental issues shouldn\u2019t be tied to trade.<\/li>\n\n\n\n<li><strong>Impact on Exports: <\/strong>The policy hurts the export competitiveness of developing countries such as China and India.\n<ul class=\"wp-block-list\">\n<li>CBAM could affect 43% of India\u2019s exports to the EU, including metals, textiles, chemicals, electronics, and vehicles.<\/li>\n\n\n\n<li>CBAM could impose a 20-35% tax on specific imports like steel and aluminium.<\/li>\n\n\n\n<li>India\u2019s metal sector is most vulnerable, with exports worth over $8 billion at risk.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Violation of International Agreements: <\/strong>The Paris Agreement adopted in 2015 protects developing countries from the social and economic impacts of \u201cresponse measures\u201d against climate change.\n<ul class=\"wp-block-list\">\n<li>Dubai climate meeting (COP28) in 2023 acknowledged that \u201cmeasures taken to combat climate change, including unilateral ones, should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade\u201d.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Benefits Developed World:<\/strong> Industries in developed economies with emissions standards comparable to the EU\u2019s stand to benefit from a CBAM-like measure.\n<ul class=\"wp-block-list\">\n<li>CBAM, therefore, can have the net effect of helping industries in the developed world, while putting those in developing countries at a disadvantage.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead for India on CBAM<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strengthen Global Negotiations through Alliances: <\/strong>India can actively collaborate with other developing countries, especially under platforms like the Trade and Technology Council (TTC), G77, and BASIC group, to push for a fair and equitable global carbon policy.&nbsp;<\/li>\n\n\n\n<li><strong>Build Domestic Carbon Competitiveness: <\/strong>Invest in green technologies, cleaner industrial processes, and carbon accounting mechanisms to align with global emission norms.&nbsp;<\/li>\n\n\n\n<li><strong>Establish a Carbon Market Framework: <\/strong>Developing a robust carbon market domestically, as India has already proposed, can help internalize carbon pricing and provide a benchmark that can be negotiated internationally.<\/li>\n\n\n\n<li><strong>Sectoral Support for Affected Industries: <\/strong>Provide financial, technological, and policy support to vulnerable sectors such as steel, aluminium, and chemicals to help them reduce emissions intensity and comply with international standards.<\/li>\n\n\n\n<li><strong>Develop a Counter-Policy Framework: <\/strong>India can consider formulating its own carbon border policy or tax incentives for green manufacturing, ensuring a level playing field domestically while signaling its readiness for fair environmental trade practices.<\/li>\n\n\n\n<li><strong>Leverage EU\u2013India Trade Talks:<\/strong> Use ongoing <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/08-05-2025\/free-trade-agreement-signed-between-uk-india\">Free Trade Agreement<\/a> (FTA) negotiations with the EU to seek exemptions, transitional arrangements, or mutual recognition mechanisms for Indian exporters under CBAM.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/india\/brics-nations-condemn-reject-europes-carbon-based-import-duties-10113128\/\" rel=\"nofollow noopener\" target=\"_blank\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">BRICS nations have \u201ccondemned and rejected\u201d the Carbon Border Adjustment Mechanisms (CBAM) of the European Union (EU) and similar restrictive trade measures, saying they undermine their transition to a cleaner economy.<\/li>\n<p><\/p>\n<h3><strong>CBAM<\/strong><\/h3>\n<li class=\"ms-5\">CBAM is an import duty imposed by the European Union (EU) on goods produced by processes that lead to more carbon emissions than domestic European manufacturers are allowed to emit.\u00a0<\/li>\n<li class=\"ms-5\">It is introduced to put a \u201cfair price\u201d on carbon-intensive goods imported from non-EU countries.\u00a0<\/li>\n<li class=\"ms-5\">It is to create a level playing field with EU companies that account for their carbon emission through the bloc\u2019s Emission Trading System (ETS).<\/li>\n<li class=\"ms-5\">Application: To be imposed from January 1, 2026, on six items: steel, aluminium, cement, fertilizer, hydrogen, and electricity.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/10-07-2025\/brics-condemns-eu-cbam\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-47611","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/47611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=47611"}],"version-history":[{"count":6,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/47611\/revisions"}],"predecessor-version":[{"id":49491,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/47611\/revisions\/49491"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=47611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=47611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=47611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}