Carbon tax ‘undermines developing nation efforts’

New Delhi: BRICS countries on Saturday, in their New Delhi declaration, specified energy security as a crucial foundation for social and economic development , emphasising that fossil fuels will still play an important role and the need for a just, orderly and equitable energy transition. Member countries haveopposed unilateral trade-restrictive measures such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), stating it can undermine efforts being made by developing economies to effect the transition.

“We oppose unilateral, punitive, discriminatory and protectionist measures that are not in line with international law, such as carbon border adjustment mechanisms, and express 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,” the declaration read on Saturday. CBAM is in place across the European Union from January 1, 2026 and enforces a carbon pricing policy aimed at equalising carbon costs between domestic and imported goods – essentially imposing a ‘pollution tax’ on higher carbon goods imported into these EU countries.

Acknowledging an increasing incidence of disasters, including those linked to climate change, member countries reaffirmed commitment for BRICS cooperation to improve national disaster risk reduction systems while mobilising accessible, predictable and adequate, predictable financing.

“In this context, we welcome the BRICS Guidelines for Disaster Management Early Warning Data Integration and the BRICS Voluntary Principles for Climate-Resilient Urban Infrastructure,” the declaration states, acknowledging the role of the Coalition for Disaster Resilient Infrastructure (CDRI) as an international partnership for supporting member and partner countries in integrating resilience. Proposed by India in 2016, CDRI, a multilateral international organisation, was launched in 2019.

“We also underscore the importance of enhancing early warning systems and risk-informed planning to strengthen preparedness and response capacities,” the resolution added.

It further recognised the disproportionate burden imposed by climate finance across countries, stating the report “Role of Central Banks towards optimising Sustainable and Green Finance, including Adaptation”, looks at possibility of making climate finance more bankable.

The BRICS grouping further said it remains united in achieving goals under the Paris Agreement.

“This includes its provisions related to mitigation, adaptation, loss and damage and the provision of means of implementation to developing countries, reflecting equity and the principle of common but differentiated responsibilities and respective capabilities, in light of different national circumstances. We also recognise that high debt burdens further constrain climate and development investment in many developing countries and call for coordinated international action to enhance debt sustainability, expand fiscal space, and support sustainable development and climate financing,” it states, commending the ‘successful’ conclusion of the Brazilian COP30 presidency and expressing support for Ethiopia’s UNFCCC COP32 presidency.

Amidst growing global volatility around the energy sector, the declaration called for the need to enhance energy security too -- by ensuring energy market stability and maintaining undisrupted flows of energy from diverse sources, strengthening value chains, ensuring resilience and protection of critical energy infrastructure, including cross-border infrastructure.

“We underscore the importance of balanced and diversified energy mixes reflecting national circumstances and recognize that the widest variety of energy sources and technologies including but not limited to renewable energy, bioenergy, fossil fuels, nuclear energy, hydropower, hydrogen, low carbon technologies, energy storage technologies, which play an important role in achieving the SDGs and energy security. We underscore the role of all available energy sources, resilient energy supply chains and enhanced cooperation among BRICS countries through deliberations in the energy track,” it added.

The declaration further highlighted the potential of the ‘BRICS Climate Research Platform’ and the ‘BRICS Laboratory for Trade, Climate Change and Sustainable Development’ – for promoting climate action and building resilience in the BRICS Member Countries. “We look forward to their further development,” the declaration said.

Li Shuo, Director, China Climate Hub at the Asia Society Policy Institute said the declaration shows BRICS is determined to chart its own course on climate and energy -- one that emphasizes the alignment of development and decarbonization rather than treating them as competing priorities. “The bloc’s explicit rejection of carbon border taxes, alongside its insistence that fossil fuels will remain part of the energy mix for emerging economies, signals that these leading Global South countries intend to define the terms of their own energy transition rather than have them imposed by others,” he said.