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illuminem summarises for you the essential news of the day. Read the full piece on The Times of India or enjoy below:
🗞️ Driving the news: The BRICS nations (Brazil, Russia, India, China, and South Africa) have jointly rejected the European Union’s proposed Carbon Border Adjustment Mechanism (CBAM), labelling it discriminatory and detrimental to their economic development
• In a statement issued on July 9, the bloc criticised the unilateral nature of the policy, which they argue unfairly penalises developing economies while undermining global climate cooperation
🔭 The context: The EU’s CBAM, slated to enter full effect in 2026, aims to impose tariffs on carbon-intensive imports such as steel, cement, and aluminium, aligning foreign producers with EU climate goals
• While the EU frames it as a climate-protection tool to avoid carbon leakage, developing nations, particularly BRICS members, have long argued that such measures violate WTO principles and disregard differentiated responsibilities under the Paris Agreement
🌍 Why it matters for the planet: This diplomatic rift underscores the tension between climate ambition and equity — a core challenge of global sustainability governance
• If left unresolved, it risks weakening trust between developed and developing nations, potentially hindering collective climate action.
• Conversely, it raises urgent questions about how trade and climate policies can be better aligned to support decarbonisation without exacerbating global inequities
⏭️ What's next: The BRICS rejection sets the stage for negotiations at upcoming WTO and COP30 meetings, where developing nations are expected to push for alternative, cooperative approaches
• The EU may face growing pressure to adjust its CBAM design or enhance financial and technical support for low-carbon transitions in emerging economies
• The outcome of these discussions will influence the credibility of global climate governance and the trajectory of green trade frameworks
💬 One quote: “The CBAM undermines the principle of common but differentiated responsibilities and imposes an unjust burden on developing countries striving for sustainable growth,” a BRICS statement noted
📈 One stat: The EU’s CBAM is projected to cover imports worth approximately €16 billion annually by 2030, significantly affecting exporters in BRICS and other emerging markets
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