The BRICS nations—Brazil, Russia, India, China, and South Africa—have signed a Memorandum of Understanding (MOU) to collaborate on carbon market initiatives. This agreement sets the stage for joint projects and targets, aiming to strengthen environmental action within the bloc.
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Russian Economic Development Minister Maxim Reshetnikov highlighted the unified position of BRICS nations in addressing the challenges posed by a set of measures from developed countries. He emphasised that such measures can create difficulties for emerging economies and impact global supply chains, with a focus on the EU's Carbon Border Adjustment Mechanism.
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The MOU complements a broader framework addressing mitigation, adaptation, and funding. It reflects BRICS' intent to pursue climate strategies that support their economic growth while offering an alternative to the approaches of the US, UK, and EU.
Several BRICS nations are already moving forward with their own carbon markets. Brazil is planning to launch its market ahead of the COP30 conference, India is finalising its system, and China continues to expand the world’s largest carbon market.
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A key question arising from the MOU is how closely aligned BRICS markets will be with the UN’s global carbon market framework under Article 6 of the Paris Agreement. BRICS nations, which produce 44% of global crude oil, have pledged to transition away from fossil fuels at a slower pace than G7 countries.
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