Thu. Mar 28th, 2024
COP27 SummitImage Credits: REUTERS/ Sayed Sheasha

On Wednesday, a consortium of countries (BASIC) comprising India, Brazil, China, and South Africa jointly opposed the Carbon Border Adjustment Mechanism (CBAM), proposed by the European Union (EU), at the ongoing United Nations Conference of Parties, popularly called COP27.

The proposed policy will levy taxes on the imports of carbon-intensive products like cement, iron, and steel, with effect from 2026.

In the joint statement, it said: “Unilateral measures and discriminatory practices, such as carbon border taxes, that could result in market distortion and aggravate the trust deficit amongst Parties (signatory countries to the United Nations climate agreements), must be avoided.” (The Indian Wire)

Flagged Concerns

They have also raised concerns that developed countries are not responding with a matching progression of effort, pointing out that they had not fulfilled even their basic requirements for mitigation, finance, and technology transfer.

“There has also been a significant increase in the consumption and production of fossil fuels in the past year by developed countries, even as they continue to press developing countries to move away from the same resources. Such double standards are incompatible with climate equity and justice,” BASIC said in the statement.

Adaptation efforts

In addition, countries have expressed dismay that adaptation is still not being accorded the “balance and substantive attention they deserve in the UNFCCC process,” despite the opportunities.

“The key to address risk aversion in investing in developing countries, to prioritize grant support and dramatically lower the cost and conditionality on borrowing money that places multilateral support out of reach of most of the world’s population, including in BASIC countries,” as the statement claimed.

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