BASIC Nations Push for Inclusion of European CBAM in COP29 Agenda
Date:2024-11-14View:79Tags:cold rolled stainless steel coil,Welded Alloy Steel Pipe,"316L Stainless Steel Plate"
The BASIC countries comprising Brazil, South Africa, India, and China are steadfast in their demand for the discussion of a European Carbon Border Adjustment Mechanism (CBAM), according to a report by S&P Global.
During the initial plenary session of the UN Climate Conference COP29 in Baku, proceedings were momentarily halted as these nations urged for the incorporation of "climate change-related unilateral trade-restrictive measures" like CBAM in the official agenda.
Despite their insistence, the hosting nation decided to relegate the topic to informal discussions.
This incident underscores the existing tensions among countries with divergent climate priorities and the pressing need to reach consensus on crucial matters within a limited timeframe.
Numerous developing nations, significantly impacted by CBAM, have voiced their apprehensions and objections during past climate summits. However, the UN has yet to formally include this issue in its agenda. The European Union contends that this matter pertains to trade and should be deliberated within the World Trade Organization (WTO).
In a statement released in July of this year, the BASIC coalition criticized the measures taken by affluent nations to implement border carbon levies and trade-distorting subsidies as "discriminatory."
Experts and delegates at COP meetings have observed a growing convergence between climate and trade policies, signaling the necessity for the UN Climate Conference to establish a structured platform for these discussions.
The stance against CBAM is particularly pronounced among developing nations, with a significant focus from the BASIC group. Given that a substantial portion of their exports are directed towards the EU, these economies are particularly vulnerable. South Africa has repeatedly condemned the mechanism as discriminatory, India has contemplated retaliatory actions, and China has raised objections within the WTO.
An assessment by S&P Global Commodity Insights indicates that Brazil, Canada, South Africa, and Turkey are poised to be the most adversely affected by CBAM, especially impacting their metallurgical and mining sectors.
As CBAM regulations are expected to expand and become more stringent in the future, global supply chains are likely to undergo restructuring. Failure to meet the EU's heightened climate objectives may result in reduced market access for companies from third countries, while intensifying competition in non-CBAM markets.
