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.