{"id":86508,"date":"2026-10-09T18:21:44","date_gmt":"2026-10-09T12:51:44","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=86508"},"modified":"2026-10-09T18:22:54","modified_gmt":"2026-10-09T12:52:54","slug":"brics-cbam-consequences","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/09-10-2026\/brics-cbam-consequences","title":{"rendered":"BRICS Needs To Address CBAM Consequences"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/International Relation; GS3\/Climate Change<\/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><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/14-09-2026\/18th-brics-summit\"><strong>India\u2019s 2026 BRICS chairship<\/strong><\/a><strong> <\/strong>has renewed debate over unilateral climate-linked trade measures, especially the <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/17-04-2026\/eu-cbam-products\"><strong>EU\u2019s CBAM<\/strong><\/a><strong>,<\/strong> and the need for common carbon-accounting standards.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Climate Agenda &amp; Global Trade<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Climate policy and international trade are increasingly inseparable.\u00a0<\/li>\n\n\n\n<li>Environmental regulation can directly affect <strong>market access, competitiveness and global supply chains<\/strong> as countries impose carbon prices, deforestation rules, sustainability due diligence and product-level emissions standards.<\/li>\n\n\n\n<li>For BRICS economies pursuing rapid industrialisation while reducing emissions intensity, fragmented climate-trade rules pose a particular challenge.<\/li>\n\n\n\n<li>The principle of <strong>Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC)<\/strong> recognises differences in countries\u2019 historical responsibility and developmental capacities.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>BRICS Climate Agenda for Rules-Based Cooperation<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/14-09-2026\/18th-brics-summit\"><strong>BRICS Declaration (2026)<\/strong><\/a> reiterates familiar positions on the <strong>UNFCCC, Paris Agreement, CBDR-RC, climate finance, biodiversity, forests and opposition to unilateral climate measures<\/strong>.<\/li>\n\n\n\n<li>However, extensive repetition of earlier declarations risks diverting attention from operational deliverables.<\/li>\n\n\n\n<li>The Declaration recognises traditional knowledge, indigenous and local practices and community experience (<strong>people-centric and community-based adaptation<\/strong>), an important approach for countries such as<strong> India, Brazil and China, <\/strong>where traditional ecological knowledge remains significant.<\/li>\n\n\n\n<li>BRICS can build on this by moving from declarations to <strong>common methodologies, mutual recognition and technical cooperation<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Unilateral Climate Measures and Protectionism: EU &amp; BRICS<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>BRICS has objected to unilateral climate-related trade measures that may become discriminatory or protectionist.\u00a0<\/li>\n\n\n\n<li>The <strong>Rio Declaration (2025)<\/strong> specifically highlighted concerns regarding <strong>deforestation regulation, due-diligence requirements, taxes and other unilateral measures<\/strong>.<\/li>\n\n\n\n<li>The EU\u2019s <strong>Deforestation Regulation (EUDR)<\/strong> and sustainability due-diligence requirements illustrate the trend towards embedding environmental compliance deep into supply chains.\n<ul class=\"wp-block-list\">\n<li>For exporters, this creates demands for <strong>traceability, documentation, verification and emissions data<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The challenge is to distinguish legitimate climate action from measures that impose disproportionate costs on developing-country producers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Does Carbon Accounting Matters?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Carbon accounting is the missing link in the BRICS climate-trade agenda.<\/strong><\/li>\n\n\n\n<li>The <strong>Rio Declaration (2025)<\/strong> had proposed mutually recognised methodologies and standards for assessing greenhouse-gas emissions and welcomed principles for <strong>fair, inclusive and transparent carbon accounting in product and facility footprints<\/strong>.<\/li>\n\n\n\n<li>It is crucial because different jurisdictions may calculate the embodied emissions of the same product differently.<\/li>\n\n\n\n<li>Such fragmentation can result in <strong>different carbon values for identical goods<\/strong>, creating uncertainty and compliance costs for exporters.<\/li>\n\n\n\n<li>A common BRICS framework could establish comparable rules for:\n<ul class=\"wp-block-list\">\n<li>system boundaries and emissions scopes;<\/li>\n\n\n\n<li>treatment of precursor or embedded emissions;<\/li>\n\n\n\n<li>verification and certification;<\/li>\n\n\n\n<li>missing or incomplete data; and<\/li>\n\n\n\n<li>mutual recognition of methodologies.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Cap-and-Trade: One Size Does Not Fit All<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Conventional <strong>cap-and-trade systems<\/strong>, developed around scarcity of emissions allowances in advanced economies, cannot simply be transplanted into developing economies whose simultaneous challenge is to <strong>expand production and reduce emissions intensity<\/strong>.<\/li>\n\n\n\n<li>India\u2019s <strong>Carbon Credit Trading Scheme (CCTS)<\/strong> illustrates an alternative, intensity-oriented approach.<\/li>\n\n\n\n<li>Recognition of qualifying domestic carbon-pricing mechanisms can potentially reduce duplication, but exporters still need to establish emissions data, system boundaries and independent verification.<\/li>\n\n\n\n<li>Therefore, climate cooperation should recognise <strong>equivalent outcomes rather than impose identical policy architectures<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>CBAM and India\u2019s Export Challenge<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The EU\u2019s <strong>Carbon Border Adjustment Mechanism (CBAM)<\/strong> entered its definitive phase in January 2026.<\/li>\n\n\n\n<li>Initially covering sectors including <strong>iron and steel, aluminium, cement, fertilisers, electricity and hydrogen<\/strong>, it links import obligations to embedded emissions.<\/li>\n\n\n\n<li>For Indian exporters, the concern is not merely the carbon price but the <strong>compliance ecosystem<\/strong> surrounding it.\n<ul class=\"wp-block-list\">\n<li>Smaller firms may face substantial costs in monitoring, reporting and third-party verification.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The proposed expansion of CBAM product coverage could further increase exposure of Indian exports, particularly in steel and aluminium.\n<ul class=\"wp-block-list\">\n<li>Thus, India needs both domestic carbon-market capacity and international negotiations on recognition of its methodologies.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward for BRICS<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>BRICS should use <strong>COP31<\/strong> and other multilateral forums to build a cooperative alternative to fragmented climate-trade regulation.<\/li>\n\n\n\n<li><strong>Operationalise the BRICS carbon-accounting principles<\/strong> sector by sector.<\/li>\n\n\n\n<li>Establish <strong>mutual recognition of emissions data and verification systems<\/strong>.<\/li>\n\n\n\n<li>Develop equivalence frameworks between different carbon-pricing mechanisms.<\/li>\n\n\n\n<li>Create technical assistance for <strong>MSMEs and developing-country exporters<\/strong>.<\/li>\n\n\n\n<li>Ensure climate-trade measures remain consistent with <strong>Paris Agreement principles, CBDR-RC and WTO rules<\/strong>.<\/li>\n\n\n\n<li>Link adaptation cooperation with traditional knowledge and community-based practices.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>BRICS can either remain a platform for repeatedly articulating opposition to unilateral climate measures or become a <strong>rule-making coalition for the Global South<\/strong>.<\/li>\n\n\n\n<li>A credible, transparent and mutually recognised carbon-accounting framework would allow BRICS to reconcile climate ambition with development, competitiveness and a fairer global trading system.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q] <\/strong>BRICS needs to move beyond opposing unilateral climate measures and develop credible, cooperative alternatives to address the consequences of the EU\u2019s Carbon Border Adjustment Mechanism (CBAM). Discuss.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.thehindubusinessline.com\/opinion\/brics-needs-to-address-cbam-consequences\/article71559501.ece\" target=\"_blank\" rel=\"noopener\">Source: BL<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Published on:<\/strong> 09 October, 2026<\/p>\n<p>India\u2019s 2026 BRICS chairship has renewed debate over unilateral climate-linked trade measures, especially the EU\u2019s CBAM, and the need for common carbon-accounting standards.<\/p>\n","protected":false},"author":15,"featured_media":86510,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-86508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/10\/BRICS-and-CBAM.webp","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86508","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=86508"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86508\/revisions"}],"predecessor-version":[{"id":86509,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/86508\/revisions\/86509"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/86510"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=86508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=86508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=86508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}