BRICS environmental and climate ministers meeting in New Delhi criticized the EU's CBAM as unilateral, punitive, discriminatory, and protectionist, warning it could become a new trade barrier for developing economies.

CBAM, which targets imports of carbon-intensive goods such as iron, steel, aluminium, cement, fertilisers and electricity, began its definitive phase on January 1, 2026, requiring importers to buy and surrender emission certificates for covered products.

BRICS argued that CBAM imposes higher carbon costs on developing countries’ exports, undermining price competitiveness for steel, aluminium and cement from member nations.

India’s BRICS Chairship for 2026 emphasizes equity under the Paris Agreement, common but differentiated responsibilities, and enhanced access to finance, technology transfer, and capacity-building for developing nations.

Adaptation finance, distinct from mitigation funding, targets climate impacts like water security, agriculture, infrastructure, disaster preparedness and climate-resilient livelihoods, rather than emissions reductions.

Adaptation finance priorities include water security, agriculture, infrastructure, disaster preparedness, and climate-resilient livelihoods, and should be easier to access with measurable delivery and impact tracking.

BRICS stresses forest fire prevention, climate finance, and people-centric, community-based adaptation, alongside stronger regional cooperation in climate action.

They urged developed nations to triple adaptation finance to developing countries by 2035 as part of discussions ahead of COP31 in Turkey.

The push for higher adaptation finance comes amid Bonn talks in June with unresolved finance negotiations, underscoring adaptation as a key issue for developing countries.

The CBAM dispute unfolds amid EU-India trade dynamics, with the EU framing India as a growing major economy within a rule-based order.

The BRICS document underscores adaptation and resilience in developing countries, acknowledging limited adaptive capacity and disproportionate climate risks while calling for balanced mitigation and adaptation.

Resolution will require international coordination, technology transfers, climate finance, transparent emissions standards, and recognition of developing countries’ circumstances to avoid turning climate policy into trade friction.