The 11-member BRICS bloc has formally opposed the European Union's carbon border tax in its New Delhi Declaration, adopted on September 12.

Paragraph 108 of the declaration criticises "unilateral, punitive, discriminatory and protectionist measures", naming the Carbon Border Adjustment Mechanism as an example. The EU's CBAM began operating on January 1 this year.

The EU charges importers for the carbon embedded in goods like steel, aluminium, cement, fertilisers, hydrogen and electricity. Certificates linked to the embedded carbon must be bought from February 2027.

India's exposure is significant. Of the $6.3 billion in CBAM-covered goods India sold to the EU in 2024, iron and steel accounted for $5.4 billion.

The BRICS position was also reflected in a joint statement after the 12th BRICS Environment Ministers' Meeting in New Delhi on August 18. India has opposed the mechanism since it was proposed, arguing it burdens businesses in developing economies.

Ministers also called for more climate finance and technology transfer for developing countries.