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China Seeks Talks on Trade Measures at COP29 Climate Summit, Document Reveals

China has requested that countries discuss carbon border taxes and other “restrictive trade measures” at next week’s COP29 U.N. climate summit, which Beijing argues are adversely impacting developing countries, according to a document seen by Reuters. This request suggests that rising trade tensions among major economies could complicate this year's United Nations climate negotiations, set to start on November 11 in Baku, Azerbaijan.

China, representing the BASIC group—which includes Brazil, India, and South Africa—submitted a proposal to the U.N. climate body (UNFCCC) asking for discussions on "concerns with climate-change-related unilateral restrictive trade measures" to be added to the COP29 agenda, the document shows.

The BASIC countries have been outspoken critics of the European Union's trade-related climate measures, such as its anti-deforestation law and its carbon border levy, which applies fees on imports of high-carbon goods. Both China and India have criticized the carbon border levy as a form of protectionism, arguing that it unfairly penalizes developing nations. Meanwhile, the EU defends the measure as necessary to prevent European industries, which pay fees on CO2 emissions, from being undercut by cheaper imports from countries with less stringent climate policies.

A UNFCCC spokesperson confirmed receipt of the BASIC countries' proposal. China's foreign ministry did not immediately respond to requests for comment.

Unless the BASIC countries withdraw their proposal, it will be presented to nations at the start of COP29, where the conference agenda must be adopted by consensus. Any contention over the COP29 agenda could delay negotiations, potentially shortening the time available for reaching agreements, including the primary objective of approving hundreds of billions of dollars in new climate funding.

The inclusion of topics on a U.N. climate summit agenda can have significant implications. For instance, a much-debated agenda item on financial compensation for climate-related losses at the 2022 summit led to the creation of the first global fund to address such losses.

Diplomats indicate that the European Union will likely oppose the BASIC proposal, noting that trade issues are better suited for discussion within the World Trade Organization rather than at U.N. climate talks. The European Commission did not respond to a request for comment.

The BASIC countries' submission argues that COP29 should address concerns from developing nations regarding trade impacts from climate policies enacted by developed countries. It states that nations should "collectively oppose any measures that restrict trade and investment, as well as the establishment of new green trade barriers, such as unilateral carbon border adjustment measures and due diligence requirements."