BRICS urges rich nations to fund energy shift as Trump threatens tariffs

BRICS has called on the world’s wealthiest countries to fund the energy transition of poorer nations to enable just transition pathways that combine climate action with sustainable development

In a joint statement during a gathering in Brazil, the group stressed the importance of accessible, timely, and affordable climate finance for developing nations, saying it is vital to achieving fair energy transitions that align climate goals with sustainable development.

“We emphasise that ensuring accessible, timely and affordable climate finance for developing countries is critical for enabling just transitions pathways that combine climate action with sustainable development,” the group said in its statement.

“We underscore that the provision and mobilization of resources under the UNFCCC and its Paris Agreement is a responsibility of developed countries towards developing countries.”

This stance reflects the typical position of the Global South, which includes nations like China and Russia, arguing that industrialised countries have historically reaped the most benefits from fossil fuel-driven development and should now bear greater responsibility for reducing the carbon emissions they produced.

However, BRICS conceded that oil and gas will remain integral to the global energy supply for decades, particularly in developing and emerging markets.

“We acknowledge fossil fuels will still play an important role in the world’s energy mix,” the group said, “particularly for emerging markets and developing economies, and we recognize the need to promote just, orderly, equitable and inclusive energy transitions and reduce GHG emissions in line with our climate goals and observing SDG7, and the principles of technological neutrality and common but differentiated responsibilities and respective capabilities taking into account national circumstances, needs and priorities.”

In response, former U.S. President Donald Trump threatened to impose an extra 10 per cent tariff on BRICS nations and any countries engaging in trade with them, accusing the bloc of promoting “anti-American policies”.

“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!” Trump said on Truth Social.

Trump’s warning came after BRICS criticised tariffs in their joint statement, describing them as harmful to global trade, “potentially exacerbating existing economic disparities and affecting prospects for global economic development.”