BRICS seeks to create a coordinated carbon‑credit trading framework
Summary
- The five BRICS nations – Brazil, Russia, India, China and South Africa – have agreed to explore a joint carbon‑market partnership.
- The partnership aims to harmonise standards, accounting rules and verification mechanisms to overcome the current fragmentation of global carbon markets.
- It will be anchored to the provisions of Article 6 of the Paris Agreement, facilitating the cross‑border transfer of internationally transferred mitigation outcomes (ITMOs).
- A unified BRICS carbon‑credit exchange is slated for launch by 2025, with the expectation of mobilising billions of dollars of climate finance for member economies.
- India views the initiative as a pathway to meet its 2030 renewable‑energy targets and to attract foreign investment in its emerging green‑technology sector.
Key Facts
- · BRICS stands for Brazil, Russia, India, China and South Africa.
- · Carbon‑market fragmentation hampers price discovery and liquidity.
- · Article 6 of the Paris Agreement deals with cooperative approaches and carbon credit trading.
- · The proposed BRICS carbon‑credit exchange will use a common registry and verification protocol.
- · Projected annual trading volume of the BRICS platform is up to $5 billion by 2027.
Why it matters
A coordinated BRICS carbon market can enhance India's ability to sell surplus emission reductions, attract climate finance, and influence global carbon‑pricing mechanisms, thereby supporting national climate‑change mitigation goals and sustainable‑development objectives.
#BRICS#Carbon market#Paris Agreement#Climate finance#India#Renewable energy