The BRICS countries, including China, India, and Russia, have opposed the introduction of the European Union’s Carbon Border Adjustment Mechanism (CBAM). They called it a punitive measure.
The comments come from the 12th BRICS Environment and Climate Ministers’ Meeting, held under India’s chairship in New Delhi.
BRICS includes the following countries: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, and the UAE. However, Saudi Arabia has not attended the meeting.
We oppose unilateral, punitive, discriminatory and protectionist measures
“We oppose unilateral, punitive, discriminatory and protectionist measures that are not in line with international law, such as carbon border adjustment mechanisms (CBAM),” according to the joint statement of the ministers.
They expressed concern that such measures undermine efforts by countries, specifically the developing countries, aimed at addressing the adverse impacts of climate change, increasing adaptive capacity and resilience.
CBAM entered into force on January 1. Since the beginning of this year, firms in the EU that import aluminum, cement, electricity, iron and steel, hydrogen and fertilizers from non-EU countries are obliged to pay a carbon price under CBAM.
But, the deadline to submit CBAM certificates for 2026 is May 31, 2027.
India is among countries with significant exposure to mechanism
According to media outlet Hindy, India is among the countries with a significant exposure to the mechanism. Iron and steel account for about 90% of India’s CBAM-covered exports to the EU.
During the CBAM reporting phase, firms producing high-emissions steel have reduced their export to the EU, while lower-emission businesses kept their export quantities, according to the June 2026 analysis by Nature Climate Change.
The reporting phase started from October 2023, and ended at the end of 2026.
Of note, the six Western Balkans (WB6) Energy Community contracting parties (Albania, Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia, and Serbia) are also feeling the CBAM pain.
