The European Union (EU) introduced the Carbon Border Adjustment Mechanism (CBAM) last year, which has been met with strong objections from BASIC countries (Brazil, South Africa, India, and China). These countries have raised concerns that CBAM unfairly impacts developing nations, and the issue was discussed at the COP29 meeting in Baku. While the EU defends CBAM as a non-discriminatory measure, the BASIC countries argue that it violates existing international trade and climate agreements.

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• On November 11, China, representing BASIC countries, proposed adding “unilateral restrictive trade measures” to the COP29 agenda, though it didn’t explicitly mention CBAM.
• The European Union opposed the proposal, and COP decisions require consensus, leading to informal consultations on the matter.
• COP29, being held in Baku from November 11 to 22, focuses on climate negotiations among UNFCCC member countries.
• BASIC countries, including China and India, argue that CBAM unfairly targets developing nations and violates international trade and climate agreements.
• China and India warn the EU that unilateral trade measures could harm multilateral cooperation on climate change.
• CBAM aims to impose carbon taxes on goods imported into the EU, aiming to reduce carbon emissions but has sparked controversy for its impact on countries with fewer resources for green technologies.
• The BASIC countries stress that the mechanism undermines the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC), a key tenet of climate negotiations.
• EU insists that CBAM is not discriminatory and applies to all countries equally, including developed nations.
• The COP presidency has taken up the issue for informal consultations after the EU’s strong opposition to BASIC’s proposal.
• The ongoing discussions highlight growing tensions between developed and developing nations over climate justice and economic fairness.