# Op-ed: BRICS carbon partnership should build a common rulebook before a common market

URL: https://upsc.help/current-affairs/2026-11-05/brics-carbon-markets-rulebook-oped/
Date: 5 November 2026 (2026-11-05)
Source: The Hindu, Opinion (Page 6)
UPSC papers: GS3, GS2
Publisher: upsc.help (Pratidin), free and open-source UPSC Civil Services current affairs. Not affiliated with UPSC. Every fact was checked against the source reports by a separate review before publishing.

**In one line:** An op-ed argues that BRICS should first agree on how to measure and verify emission cuts, and test small transfers, before thinking of a shared carbon market.

An op-ed in The Hindu on 5 November 2026 asks what the BRICS Carbon Markets Partnership should do next. The New Delhi Declaration, adopted at the 18th BRICS Summit on 12 September 2026, said members look forward to implementing the Memorandum of Understanding on the partnership, and supported capacity building and exchange of experience on carbon markets. The partnership was first agreed in 2024, under Russia's chairship. The op-ed notes that it still has no trading framework, targets or timeline, and argues that its first deliverable should be a common rulebook for measuring and recognising emission reductions, not a joint trading platform. A carbon market lets emitters buy and sell permits or credits, each usually representing one tonne of carbon dioxide equivalent.

The article explains why the members' systems do not fit together. China runs a national emissions trading system (ETS), India has its Carbon Credit Trading Scheme (CCTS) and Brazil is building its own system; none is linked to another. China and India set emission-intensity benchmarks (emissions per unit of output), while Brazil plans an absolute cap. Offset rules and the legal status of a carbon unit also differ. The pressure to act comes from outside: the European Union's Carbon Border Adjustment Mechanism (CBAM), a charge on the carbon content of imports such as steel and aluminium, entered its definitive phase on 1 January 2026, and the United Kingdom's begins on 1 January 2027. Exporters need verifiable emissions data to avoid being charged on default values. The UK already lists India's CCTS among qualifying overseas carbon pricing schemes.

The op-ed proposes a sequence: common rules for measurement, reporting and verification (MRV) in sectors exposed to CBAM; mutual recognition of verifiers and matching registry data; then a small pilot among two or three members under Article 6.2 of the Paris Agreement, which allows countries to transfer emission reductions bilaterally. It suggests the New Development Bank could later host a shared registry. It flags frictions: a host country that sells reductions must make a corresponding adjustment and give up that credit toward its own target, cross-border payments raise capital-account questions, and registries must prevent double issuance. It also lists limits: China's scale could make it the price-setter, sanctions complicate settlement, and members compete as steel and aluminium exporters. It treats full linking of markets as neither likely nor desirable. The BRICS declaration itself opposes "unilateral, punitive, discriminatory and protectionist measures", a reference to CBAM-type levies.

## Prelims facts

- The New Delhi Declaration of the 18th BRICS Summit (12 September 2026) looked forward to implementing the MoU on the BRICS Carbon Markets Partnership.
- The op-ed argues the partnership should first agree common MRV rules and mutual recognition of verifiers, then run a small Article 6.2 pilot.
- The EU CBAM's definitive phase began on 1 January 2026; the UK's CBAM starts on 1 January 2027.
- China and India use emission-intensity benchmarks, while Brazil plans an absolute cap; no BRICS carbon market is linked to another.
- Under Article 6.2, a country transferring emission reductions must make a corresponding adjustment so the same tonne is not counted twice.

## Quick recall

- **When was the New Delhi Declaration of the 18th BRICS Summit adopted?** 12 September 2026.
- **What does CBAM stand for?** Carbon Border Adjustment Mechanism, the EU's charge on the carbon content of certain imports.
- **When did the EU CBAM's definitive phase begin?** 1 January 2026.
- **When does the UK CBAM begin?** 1 January 2027.
- **What is a corresponding adjustment?** An accounting entry under Article 6 so that a transferred emission reduction counts only for the buyer, not also for the seller.
- **What does MRV stand for?** Measurement (or monitoring), reporting and verification of emissions.
- **Which BRICS institution does the op-ed suggest could host a shared registry?** The New Development Bank.
- **Under which law is India's Carbon Credit Trading Scheme notified?** The Energy Conservation Act, 2001, as amended in 2022.

## Prelims practice question

Consider the following statements:
1. Article 6.2 of the Paris Agreement provides for cooperative approaches in which countries transfer mitigation outcomes between them.
2. A corresponding adjustment ensures that a transferred emission reduction is not counted by both the selling and the buying country.
3. The European Union's Carbon Border Adjustment Mechanism entered its definitive phase on 1 January 2026.
Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (d) 1, 2 and 3. All three are correct. Article 6.2 covers bilateral transfers of internationally transferred mitigation outcomes; corresponding adjustments prevent double counting; and the EU CBAM moved from its transitional to definitive phase on 1 January 2026.

## UPSC previous-year questions this connects to

- UPSC Mains 2014, GS3: Should the pursuit of carbon credits and clean development mechanisms set up under UNFCCC be maintained even though there has been a massive slide in the value of a carbon credit? Discuss with respect to India's energy needs for economic growth. (https://upsc.help/pyq/q104-should-pursuit-carbon-credits-clean-development-mechanisms/)
  How to use this story in the answer: Show that carbon markets have moved from CDM credits to compliance systems and trade-linked verification, which India must engage with.
- UPSC Mains 2026, GS2: "BRICS acts as a powerful counterweight in global governance, actively amplifying the voice and influence of the Global South." Explain the role of BRICS in projecting itself as an alternative to other groupings. (https://upsc.help/pyq/q013-brics-acts-powerful-counterweight-global-governance-actively/)
  How to use this story in the answer: Use the carbon markets partnership as an example of BRICS shaping alternative rules on climate and trade for the Global South.

## Mains practice question

The spread of carbon border adjustment mechanisms has made interoperable carbon accounting a trade necessity for emerging economies. In this context, examine the prospects and limitations of the BRICS Carbon Markets Partnership for India. (250 words)

### Model answer

The New Delhi Declaration of September 2026 reaffirmed the BRICS Carbon Markets Partnership, just as the EU's Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase on 1 January 2026.

## Why interoperable accounting matters
- CBAM charges imports such as steel and aluminium on embedded carbon; without verified data, exporters face default values.
- The UK CBAM starts on 1 January 2027; the UK already recognises India's CCTS as a qualifying scheme.

## Prospects
- **Common MRV rules** for CBAM-exposed sectors would give exporters credible data.
- **Mutual recognition of verifiers** and matching registry data cut costs.
- **Article 6.2 pilots** among two or three members could test transfers of mitigation outcomes.
- **Institutional home:** the New Development Bank could host a shared registry.
- **Voice:** a joint standard strengthens BRICS' stance against "unilateral, punitive, discriminatory and protectionist measures".

## Limitations
- Designs differ: China and India use intensity benchmarks; Brazil plans an absolute cap.
- Corresponding adjustments mean a seller gives up credit toward its own NDC.
- China's scale could make it the price-setter; sanctions and capital controls complicate settlement.
- Members compete as steel and aluminium exporters.
- Voluntary carbon credits face criticism over over-crediting.

## For India
- Use its CCTS experience to shape rules rather than market linkage.
- Protect NDC accounting while building export-grade MRV.

As the op-ed argues, a shared rulebook, not a shared market, is the realistic and useful first step.

## The basics

## Why this matters
Carbon is becoming a trade issue, not just a climate issue. Europe now charges importers for the carbon in their goods, and the UK will follow. For India, which exports steel and aluminium, the question is no longer whether to measure emissions but whose rules will count. BRICS members are trying to answer together.

## What a carbon market is
A Carbon market puts a price on emissions. Under a cap or an intensity target, firms that cut more than required earn units they can sell; those that fall short must buy. Each unit usually stands for one tonne of carbon dioxide equivalent.

## The external push
The Carbon Border Adjustment Mechanism makes importers buy certificates for the emissions in goods such as steel, aluminium, cement and fertilisers. Exporters who cannot prove their actual emissions are charged on default values, which are usually higher.

## The op-ed's sequence
The article proposes building trust step by step, starting from Measurement, reporting and verification (MRV).

## The catch
Under Article 6 of the Paris Agreement, a country that sells a reduction must subtract it from its own climate accounts. That cost, along with currency and sanctions issues, is why the op-ed does not expect a fully linked BRICS market.

## Sources

- https://www.legacyias.com/editorials-opinions-analysis-for-upsc-05-november-2026/
- https://superkalam.com/current-affairs/05-11-2026/what-the-brics-carbon-market-partnership-needs-pg6-01a5f388-1289-4f71-97f4-1c3a59bf922f
- https://www.downtoearth.org.in/climate-change/brics-backs-carbon-market-cooperation-while-opposing-unilateral-cbam
- https://carbon-pulse.com/317939/