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BRICS Carbon Markets at a Crossroads: Article 6 or a New Era?
Emerging-economy bloc must choose between a unified internal trading system or full integration with multilateral carbon markets.
Overview
The BRICS carbon-markets partnership—launched at the 2024 Kazan summit—now stands at a pivotal decision point: will member states build a bespoke intra-BRICS credit-trading regime via mutual recognition of registers and standards, or will they align with the multilateral framework of Paris Agreement Article 6? The question carries major implications for climate diplomacy, trade, and financial flows in the global economy.
Key Developments
The Kazan declaration described the partnership as a platform for “potential intra-BRICS cooperation on carbon markets to exchange views on potential cooperation under Article 6 of the Paris Agreement among the BRICS countries.”
By early 2025, eight out of eleven BRICS-group countries had established a voluntary carbon-credit market, with two others finalising regulatory frameworks.
Significant divergence exists in national approaches: e.g., China rejects foreign registries and only allows domestic projects; other members like Brazil and South Africa convert credits from international registries (Verra, Gold Standard) into national systems.
Credit-price disparities: about US$14 per credit in Beijing versus under US$3 in Indonesia—highlighting major structural differences.
BRICS leaders formally opposed unilateral green-protectionism measures, including carbon border adjustment mechanisms (CBAM), reinforcing their preference for a system designed by emerging economies.
Meanwhile, the international framework under Article 6 of the Paris Agreement (including Articles 6.2 and 6.4) is increasingly operationalised—offering an alternative path to market cooperation.
Why It Matters
This moment matters because the decision will shape how carbon-credit flows, climate finance and trade linkages evolve among major emerging economies—and how they interact with the established Western-dominated climate-finance system.
If BRICS members opt for a self-contained recognition regime, we may see a parallel carbon-market architecture outside the dominant frameworks. Conversely, alignment with Article 6 could integrate BRICS into the global carbon-market infrastructure, boosting transparency and linkage with global capital flows—but also potentially ceding some regulatory sovereignty.
Implications for the Global Reset
Pillar: Markets — Carbon credits are not just climate instruments; they are becoming tradeable assets that factor into real economic flows across borders.
Pillar: Finance — The structure of credit-generation and trading impacts capital-investment decisions in emerging economies, and affects how climate risk is priced.
Pillar: Currency & Reserve System — If BRICS currencies or regional credit-settlement systems end up being used in carbon-trade settlement, this could erode the dominance of dollar-settled frameworks.
The deeper point: the interplay of climate-markets, trade-regulation and financial architecture means that the global reset is not only about money and states, but about how value is created and transferred in a decarbonising world.
This is not just politics — it’s global finance restructuring before our eyes.
Seeds of Wisdom Team
Newshounds News™ Exclusive
Sources
Watcher.Guru, “BRICS Carbon Markets at a Crossroads: Article 6 or New Era?” 10 Nov 2025. (https://watcher.guru/news/brics-carbon-markets-at-a-crossroads-article-6-or-new-era) Watcher Guru
RenewableMatter.eu, “BRICS at a crossroads: mutual recognition or Article 6?” 7 Nov 2025. (https://www.renewablematter.eu/en/brics-at-a-crossroads-mutual-recognition-or-article-6) Renewable Matter
UNFCCC, “What is Article 6 of the Paris Agreement?” (https://unfccc.int/process-and-meetings/the-paris-agreement/article-6) UNFCCC
Columbia University Energy Policy Institute, “How to Fully Operationalize Article 6 of the Paris Agreement” Sept 2025. CGEP
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