Op-ed: BRICS carbon partnership should build a common rulebook before a common market
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.
Published 5 November 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work
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?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Show answer
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.
Use this in UPSC Mains: previous-year questions
Recurring theme: Carbon markets, carbon border taxes and Global South climate cooperation
- How to use this
Show that carbon markets have moved from CDM credits to compliance systems and trade-linked verification, which India must engage with.
- India's Carbon Credit Trading Scheme uses emission-intensity targets, allowing growth while cutting emissions per unit of output.
- The EU CBAM's definitive phase began on 1 January 2026, making verified emissions data a trade necessity.
- Article 6.2 pilots let countries transfer reductions, but sellers must make corresponding adjustments.
- How to use this
Use the carbon markets partnership as an example of BRICS shaping alternative rules on climate and trade for the Global South.
- The 2026 New Delhi Declaration opposed "unilateral, punitive, discriminatory and protectionist measures" such as carbon border taxes.
- A proposed BRICS MRV rulebook and New Development Bank registry would give members their own verification standards.
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.
- Limits emissions per unit of output
- Total emissions can rise if output grows
- Suits fast-growing economies
- Limits total emissions
- Cap tightens over time
- Gives a clear emissions ceiling
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.
- 2015Paris Agreement adopted, with Article 6 on cooperation
- 2023India notifies its Carbon Credit Trading Scheme
- 2024BRICS agree to a carbon markets partnership under Russia's chairship
- 1 January 2026EU CBAM enters its definitive phase
- 12 September 2026New Delhi Declaration looks forward to implementing the partnership MoU
- 1 January 2027UK CBAM begins
The op-ed's sequence
The article proposes building trust step by step, starting from Measurement, reporting and verification (MRV).
- 1Common MRV rulesShared monitoring rules for CBAM-exposed sectors
- 2Mutual recognitionAccept each other's accredited verifiers; match registry data fields
- 3Small pilotTwo or three members transfer units under Article 6.2
- 4Shared infrastructurePossibly a registry facility hosted by the New Development Bank
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.
Go deeper
Why it matters for UPSC
The piece links climate policy (GS3) with groupings and trade (GS2). Prelims can test CBAM dates and sectors, Article 6 of the Paris Agreement and India's CCTS. Mains can ask about carbon border taxes, Global South cooperation and India's climate diplomacy.
The core idea
A Carbon market only works if a tonne measured in one place is trusted elsewhere. The EU's Carbon Border Adjustment Mechanism makes that trust a trade issue. The op-ed's answer is shared Measurement, reporting and verification (MRV) rules, mutual recognition of verifiers and a small pilot under Article 6 of the Paris Agreement, rather than linking BRICS markets outright.
Numbers and dates to remember
- 12 September 2026: New Delhi Declaration, 18th BRICS Summit.
- 2024: BRICS carbon markets partnership agreed under Russia's chairship.
- 1 January 2026: EU CBAM definitive phase; 1 January 2027: UK CBAM.
- India's CCTS: notified 2023 under the Energy Conservation Act, 2001.
Where to go next
- Carbon market: how pricing emissions works.
- Carbon Border Adjustment Mechanism: the external pressure on exporters.
- Article 6 of the Paris Agreement: the legal route for cross-border transfers.
- Measurement, reporting and verification (MRV): the foundation of any carbon rulebook.
Go deeper: rule-taker or rule-shaper?
Why a rulebook first. A shared trading platform would need agreement on caps, prices, currencies and legal rights, all contested. Common Measurement, reporting and verification (MRV) rules are narrower and give immediate value: exporters facing the Carbon Border Adjustment Mechanism can show actual emissions instead of paying on default values. The UK's recognition of India's CCTS shows that credible domestic systems can earn acceptance.
Why not link markets now. Designs diverge: China and India use intensity benchmarks within their Carbon market systems, while Brazil plans an absolute cap, so a unit means different things. Under Article 6 of the Paris Agreement, a seller must make a corresponding adjustment and give up that reduction toward its own target, a real cost for developing countries with ambitious NDCs. China's size could make it the price-setter. Sanctions on some members complicate payments. Members compete in steel and aluminium.
The political frame. The New Delhi Declaration opposed "unilateral, punitive, discriminatory and protectionist measures", which is how many developing countries see CBAM. They argue such levies shift the cost of climate action onto poorer exporters and sit uneasily with common but differentiated responsibilities. Supporters in Europe argue CBAM prevents carbon leakage. A BRICS rulebook lets members contest CBAM while also meeting its data demands.
For India. India holds the BRICS chairship in 2026 and runs the CCTS. Shaping verification standards could help its exporters, support its NDC and net-zero by 2070 goal, and give it a rule-shaping role for the Global South.
Carbon market
How putting a price on emissions works.
In one line: A carbon market creates tradable units for emissions so that cuts happen where they are cheapest.
How it works
In a compliance market, the government sets a limit: either an absolute cap on total emissions or an intensity target per unit of output. Firms that beat the limit earn units they can sell; those that miss it must buy. Voluntary markets let companies buy credits from projects such as renewable energy or forestry to offset their emissions. Integrity depends on credible baselines and verification.
India's version
India's Carbon Credit Trading Scheme was notified in 2023 under the Energy Conservation Act, 2001, as amended in 2022. Its compliance mechanism sets emission-intensity targets for energy-intensive sectors, and it also has an offset mechanism.
Where to go next
Carbon Border Adjustment Mechanism
The EU measure that turns carbon accounting into a trade issue.
In one line: CBAM is the EU's charge on the carbon emitted in producing certain imported goods, meant to match the carbon price paid by EU producers.
How it works
CBAM covers iron and steel, aluminium, cement, fertilisers, electricity and hydrogen. After a transitional reporting phase from October 2023, the definitive phase began on 1 January 2026, when importers must buy certificates for embedded emissions. If actual emissions cannot be verified, default values apply. The EU says it prevents carbon leakage, where production shifts to places with weaker climate rules.
Why it matters for India
Indian steel and aluminium exporters face the charge. Developing countries, including BRICS members, call such measures unilateral and protectionist. The UK's own CBAM begins on 1 January 2027.
Where to go next
Carbon Border Adjustment Mechanism: every story that connects to it (5)
Article 6 of the Paris Agreement
The legal route for countries to trade emission reductions.
In one line: Article 6 lets countries cooperate to meet their climate targets, including by transferring emission reductions to one another.
Its parts
Article 6.2 covers cooperative approaches: two or more countries agree bilaterally to transfer internationally transferred mitigation outcomes (ITMOs). Article 6.4 sets up a UN-supervised crediting mechanism. Article 6.8 covers non-market approaches. To avoid double counting, the transferring country makes a corresponding adjustment, removing the reduction from its own accounts.
Why it is in the news
The op-ed suggests a small Article 6.2 pilot among two or three BRICS members. It warns that corresponding adjustments cost the seller credit toward its own Nationally Determined Contribution (NDC).
Where to go next
Measurement, reporting and verification (MRV)
The foundation any carbon rulebook must start from.
In one line: MRV is the system for measuring emissions, reporting them in a standard format and having an independent party verify them.
Why it matters
A carbon unit is only as good as the data behind it. Measurement covers fuel use and process emissions; reporting uses agreed formats; verification is done by accredited third parties. Registries record units so that the same reduction is not issued or sold twice.
Why it is in the news
The op-ed wants BRICS to agree common MRV rules for CBAM-exposed sectors and to recognise each other's verifiers. That would help exporters prove actual emissions and avoid default values under CBAM, without needing a linked market.
Where to go next
Take the 5 November 2026 quiz: 30 Prelims-style questions with answers