BRICS leaders at the New Delhi Summit have endorsed a BRICS Carbon Markets Partnership, focusing on expertise sharing, capacity building, and linking carbon markets with climate finance. The group also expressed firm opposition to unilateral Carbon Border Adjustment Mechanisms (CBAMs) introduced by the EU and UK.
The New Delhi Declaration supports cooperation on carbon markets, including implementing the Memorandum of Understanding on the BRICS Carbon Markets Partnership. This initiative aims to support national climate strategies, complement mitigation efforts, and mobilize resources. The declaration also encourages knowledge sharing on aligning carbon markets with adaptation goals and integrating adaptation and climate finance into discussions.
The bloc reiterated its objection to climate-linked trade measures, specifically naming CBAMs and characterizing them as unilateral, punitive, discriminatory, and protectionist. BRICS argues such measures could hinder developing countries’ climate change mitigation and adaptation efforts.
India’s Carbon Credit Trading Scheme (CCTS) has received recognition under the United Kingdom’s emerging border carbon regime. This recognition allows qualifying carbon prices paid in India to be considered for UK CBAM liability, though actual relief may be limited if the Indian carbon price is lower than the UK’s. For micro, small, and medium enterprises (MSMEs), the immediate benefits are likely limited, with compliance challenges in measurement, reporting, and verification posing a greater constraint.
Source: Down To Earth