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BRUSSELS, Nov 5 – China has proposed adding discussions on trade policies, like carbon border taxes, to the COP29 climate summit agenda, arguing these measures disproportionately impact developing nations. The request, highlighted in a document reviewed by Reuters, could introduce trade tensions into the summit, which starts November 11 in Baku, Azerbaijan.
Representing the BASIC group – which includes Brazil, India, and South Africa – China submitted a proposal to the U.N. climate body (UNFCCC) to discuss “unilateral restrictive trade measures” linked to climate policy. BASIC countries have been vocal critics of the European Union’s trade-related climate initiatives, including its anti-deforestation law and carbon border levy on high-carbon imports. Both China and India argue that these policies act as protectionist barriers, unfairly targeting developing countries.
The EU, however, defends its stance, arguing that these measures are needed to protect European industries that pay fees for their CO2 emissions from being undercut by cheaper imports from regions with less stringent climate policies.
A UNFCCC spokesperson confirmed receipt of the BASIC submission, which will be reviewed at the start of COP29, where countries will decide on the final agenda by consensus. Any disagreement over the agenda could delay proceedings, cutting into valuable negotiation time intended for addressing key issues like new funding for climate action.
Agenda choices at U.N. climate summits can have a major impact. For instance, the inclusion of a highly debated agenda item on climate damage financing at the 2022 summit led to the creation of a global fund to support those affected by climate-related losses. The EU is expected to oppose the BASIC proposal, arguing that trade matters are best handled by the World Trade Organization.
The BASIC countries’ document also stressed the importance of opposing “trade and investment restrictions and new green trade barriers,” such as unilateral carbon border adjustments and due diligence requirements.
This proposal could spark critical discussions about the balance between climate policy and economic equity at this year’s COP29.
