India Opposes Trade Barriers Linked to Carbon Emissions at COP-29

Sub : Env

Sec: Int conventions

Why in News

India has expressed strong opposition to what it calls “protectionist” trade barriers tied to carbon emissions at the ongoing climate negotiations in Baku, Azerbaijan. This stance comes in response to the increasing global trend of linking trade measures to carbon emission standards.

Key Points:

India criticized the imposition of trade barriers that connect carbon emissions with trade restrictions, arguing that they unfairly shift the costs of transitioning to low-carbon economies onto developing and low-income nations.
India described such measures as discriminatory and harmful to global cooperation, violating the principles of equity in international climate agreements.
A week before the COP-29 summit, China, on behalf of the BASIC group (Brazil, South Africa, India, and China), requested that “unilateral restrictive trade measures related to climate change” be added to the conference agenda.
The focus of the petition is primarily on countering trade barriers linked to carbon emissions, which are viewed as unjust and uncooperative.

Carbon Border Adjustment Mechanism (CBAM)

The primary concern revolves around the European Union’s Carbon Border Adjustment Mechanism (CBAM). This proposal taxes imports to the EU that do not meet its carbon emission standards.
The CBAM is currently in a transitional phase, with full implementation set to begin on January 1, 2026.
Although India and the BASIC group did not specifically name the CBAM, they referred to it as “arbitrary and unjustifiable unilateral measures” to avoid directly targeting the EU or any specific group of nations.
India’s opposition to trade barriers tied to carbon emissions highlights the tension between developed and developing nations in climate negotiations, especially regarding who should bear the costs of transitioning to sustainable economies.

BASIC countries:

BASICwas formed in November 2009 just before the Copenhagen Climate Summit (COP15)
The group consists of Brazil, South Africa, India, and China
These are major emerging economies that decided to coordinate their positions, particularly on climate change issues.