BRICS nations, comprising Brazil, Russia, India, China, and South Africa, have signed an agreement to strengthen cooperation in carbon markets and play a more active role in global climate policies. This Memorandum of Understanding (MoU) provides a broad framework for climate action, covering areas such as mitigation, adaptation, finance, and research and development (R&D).

The MoU aims to address infrastructure for carbon trading, methodologies, and verification/validation processes to support a cohesive carbon market among BRICS countries. Currently, these nations account for 44% of global crude oil production but have committed to significantly reducing fossil fuel output.

Progress in carbon markets varies across BRICS countries. Brazil plans to launch its own carbon market ahead of the COP30 summit in Manaus, targeting a 50% reduction in greenhouse gas emissions by 2030 compared to 2005 levels. India is preparing to establish its own carbon trading system, while China’s carbon market is recognized as one of the most comprehensive, with ongoing development of new methodologies. Russia aims for large-scale restructuring in its energy and industrial sectors, targeting carbon neutrality by 2060.

The alignment of the BRICS carbon market initiative with Article 6 of the Paris Climate Agreement, which focuses on creating a unified global market, remains uncertain. Further details on how the BRICS framework will complement international efforts are yet to emerge.

Source