The five BRICS nations have signed an MOU that sets up conditions for a partnership between the members of the block to establish joint carbon markets projects and targets.

Russian Economic Development Minister Maxim Reshetnikov underscored the unified position of the BRICS nations against unilateral green protectionist measures. “All BRICS countries oppose unilateral green protectionist measures by developed nations, as these harm the economies and supply chains of developing countries,” Reshetnikov stated.

The MOU is a supplementary document to a broader framework of climate action that touches on multiple aspects like mitigation, adaptation, funding and research. It can be seen as part of the broader geopolitical picture in which the U.S., UK and EU are seen as competitors to BRICS when it comes to determining the exact path of achieving net zero emissions.

In this sense the framework is designed to oppose measures that might put developing economies at a disadvantage like the existing EU Carbon Border Adjustment Mechanism and its rumored equivalents in the U.S. and UK.

BRICS already making carbon markets progress

Despite this announcement multiple BRICS members have already been active when it comes to developing their own carbon markets.

Brazil has set itself a target to launch its carbon market before the COP30 conference in Manaus next year, India is finalizing the scheme for its market and is forming a steering committee. China’s carbon market is considered to be the largest by some metrics and unveiled new methodologies for it earlier in August.

One of the questions being raised by this MOU is how connected and aligned the carbon markets between the five countries would be with the UN initiative to develop a common market under Article 6 of the Paris Agreement.

As it stands the countries in the group account for 44% of global crude oil production with pledges to phase out fossil fuels considerably after the deadlines set by the G7 countries.

Carbon Herald