With the 27^th edition of the Conference of Parties (COP) in Sharm El-Sheikh nearing its final stages and efforts being ramped up to arrive at a conclusive agreement, a consortium of countries, including India, jointly said on Wednesday that carbon border taxes, which could result in market distortion and aggravate the trust deficit among parties, must be avoided.

The European Union has proposed a policy called the Carbon Border Adjustment Mechanism to tax products such as cement and steel, which are extremely carbon intensive, with effect from 2026.

BASIC, a group comprising Brazil, India, South Africa and China, large economies that are significantly dependent on coal, has for several years voiced common concerns and reiterated their right to use fossil fuels during their transition to clean energy.

Their statement expressed “grave concern” that developed countries were not showing leadership or responding with a matching effort.