At the first UNFCCC dialogue on trade and climate, developing countries voiced strong criticism of measures like the EU's Carbon Border Adjustment Mechanism (CBAM). They argue that such policies place unfair burdens on the Global South, which has contributed less to historical emissions yet faces higher costs to access developed markets. Negotiators are now struggling to find workable solutions that balance climate goals with equitable trade conditions. The debate highlights a central tension in global climate policy: how to price carbon without penalizing developing economies. The EU's CBAM, which will require importers to purchase carbon certificates for certain goods, is seen by critics as a protectionist tool rather than a genuine climate measure. The outcome of these talks could shape how carbon border adjustments are designed and accepted worldwide, with major implications for international carbon markets and trade flows.
