BRICS member states have signed a Memorandum of Understanding (MOU) around establishing joint carbon markets projects and targets.

The MOU underpins a comprehensive climate action framework for BRICS nations which covers topics such as mitigation, adaptation, funding and research and reflects the group’s united opposition to developed nations’ unilateral green protectionist measures.

As such, the framework has been expressly formulated to counter policies like the existing EU Carbon Border Adjustment Mechanism and its US and UK equivalents. These policies are considered by some to have the potential to disadvantage developing economies.

Progress to date

Some BRICS members have already made individual progress towards developing their own carbon markets:

• Brazil has set itself a target to have established a carbon emissions trading system in time for its hosting of the COP30 conference in Belém in 2025.
• India is currently in the process of finalising its own scheme and forming a steering committee.
• In July, China celebrated the third anniversary of launching its carbon emissions trading market.

One of the aims of the MOU is connect and align carbon markets across BRICS member states. This would bring them in line with the UN initiative to develop a common market under Article 6 of the Paris Agreement.

The countries in the BRICS group account for 44% of global crude oil production. They have pledged to phase out fossil fuels considerably after the deadlines set by the G7 countries.