SHARM EL-SHEIKH, Egypt: The BASIC group, which includes India, China, South Africa and Brazil, have come together at the 27th Conference of Parties (COP 27) to oppose the concept of carbon border tax, stating that this could result in market distortion and cause trust deficit among the parties.
The Carbon Border Adjustment Mechanism policy proposed by the European Union recommends taxing carbon intensive products such as cement and steel from 2026 onwards. While developing economies significantly dependent on fossil fuels such as coal have been reiterating their right to use fossil fuels during the interim period before their countries switch to clean energy sources.
The joint statement issued by BASIC countries on Wednesday, November 16, highlighted the issue of lack of leadership efforts from the developed nations though they are responsible for much of the greenhouse gas emissions. The statement issued termed it a “grave concern”, especially when the use of fossil fuels by developed countries has gone up in the past year while they press developing countries to desist from using fossil fuels. “Such double standards are incompatible with climate equity and justice.”