--- title: "BRICS condemns EU carbon tax and push for more adaptation funding" url: https://projectchintan.com/article/brics-condemns-eu-cbam-adaptation-finance-xbllv publisher: Project Chintan author: Project Chintan Newsroom section: Politics published: 2026-08-18T16:32:32.584Z modified: 2026-08-18T18:30:08.180Z language: en-IN --- # BRICS condemns EU carbon tax and push for more adaptation funding BRICS environment ministers condemned the EU's CBAM as unilateral and protectionist, urging richer nations to boost adaptation funding for developing countries, ahead of COP31 in Turkey. ## Key takeaways - BRICS Environment Ministers condemned the EU's Carbon Border Adjustment Mechanisms as unilateral and protectionist. - They urged developed countries to provide new, additional, predictable and accessible adaptation finance to developing countries, via grants and concessional funds. - They referenced a UN 2025 commitment to triple adaptation finance by 2035 and highlighted India’s exposure to CBAM through its steel exports. ## What Happened BRICS environment ministers adopted a joint statement in New Delhi on August 18, 2026, under India’s chairmanship, criticising the European Union’s Carbon Border Adjustment Mechanisms (CBAMs) as unilateral, punitive, discriminatory and protectionist. The ministers called for a substantial increase in adaptation finance from developed countries, to be delivered as new, additional, predictable, adequate and accessible grants and concessional finance without raising developing-country vulnerabilities. They noted the EU’s CBAM entered its definitive phase on January 1 of the year, which requires importers of carbon-intensive products—such as iron and steel, aluminium, cement, fertilisers, hydrogen and electricity—to account for associated emissions. The BRICS statement highlighted India’s exposure to CBAM through steel exports and referenced a June 2026 Nature Climate Change analysis indicating reduced Indian steel exports and revenues to the EU during the CBAM reporting phase for high-emission firms, while lower-emission firms maintained levels. It also linked the context to ongoing trade policy developments, including the earlier-negotiated free trade agreement between the EU and India. The ministers urged developed countries to meet a UN climate conference commitment made in 2025 to triple adaptation finance to developing nations by 2035. They stressed the need for easier access to adaptation funding and for delivery and impact to be monitored. They framed adaptation finance as distinct from mitigation funding aimed at reducing greenhouse-gas emissions, and connected it to broader climate-resilience needs such as water security, agriculture, infrastructure, disaster preparedness and climate-resilient livelihoods. The statement arrives as the EU works with India on related trade arrangements and ahead of COP31 in Turkey later in the year. ## Why It Matters The BRICS coalition positions itself against unilateral climate measures they view as potentially undermining developing countries’ efforts to adapt to climate change. By demanding heightened adaptation funding and accessible support, BRICS ties climate finance to ongoing negotiations around global climate policy and trade rules, potentially influencing the financing landscape ahead of COP31 and related discussions. The reference to India’s steel exports suggests a specific sensitivity to CBAM’s sectoral coverage and impact on major exporting economies within BRICS. ## Background The EU’s CBAM started its definitive phase on January 1, targeting carbon emissions embedded in imports of several heavy, energy-intensive products. The mechanism aims to curb carbon leakage by ensuring imported goods reflect their emissions costs, aligning with the EU’s climate policies. India is described as significantly exposed to CBAM due to iron and steel shipments to the EU. A June 2026 analysis in Nature Climate Change noted a reduction in export quantities and revenues for high-emission Indian steel firms to the EU during the CBAM reporting phase, while low-emission firms did not see such a drop. The BRICS statement came as the bloc observed climate-finance commitments and as negotiations continued in Bonn ahead of COP negotiations, with a separate free trade arrangement between the EU and India being pursued in parallel. ## Key Facts - Event: 12th BRICS Environment Ministers’ Meeting in New Delhi, India, August 18, 2026, under Indian chairmanship. - BRICS position: Opposed EU CBAMs, calling them unilateral, punitive, discriminatory and protectionist. - Finance demand: Urged new, additional, predictable, adequate and accessible adaptation finance from developed countries; preferred as grants and concessional finance without increasing vulnerability of developing nations. - Adaptation finance target: Support to triple adaptation finance to developing countries by 2035, a commitment noted from the UN climate conference in 2025. - CBAM context: EU CBAM entered its definitive phase on January 1 of the year; covers imports including iron and steel, aluminium, cement, fertilisers, hydrogen and electricity. - India-specific context: India has significant exposure to CBAM via steel exports to the EU; a June 2026 Nature Climate Change analysis showed reduced exports/revenues for high-emission Indian steel firms to the EU during CBAM reporting, with low-emission firms less affected. - Related diplomacy: BRICS statement referenced ongoing EU-India trade discussions and a free trade agreement negotiation; COP31 is slated for November in Turkey. ## What Happens Next The BRICS call for strengthened adaptation finance aligns with ongoing UN climate conference diplomacy and Bonn talks that preceded COP31. If adopted, the proposed triple adaptation finance target by 2035 would shape future funding flows and access mechanisms for developing countries. The COP31 meeting in Turkey in November is identified as a key upcoming milestone where adaptation finance and CBAM-related issues may feature prominently in broader negotiations on climate finance, market mechanisms, and international cooperation. --- Canonical: https://projectchintan.com/article/brics-condemns-eu-cbam-adaptation-finance-xbllv Reported from: Multiple Sources