At COP30 in Belém, trade disputes — notably tariffs on Chinese electric vehicles and the EU's Carbon Border Adjustment Mechanism — have moved to the forefront alongside traditional climate and finance debates. Developing nations argue these measures block affordable green technology and risk new barriers to decarbonization, while the EU insists CBAM is a climate tool that complies with WTO rules. With the WTO dispute system stalled, countries are airing grievances at the summit and exploring other venues for resolution. Delegates expect trade to shape the COP outcome, but not to resolve the underlying disagreements.
Tariffs and Carbon Taxes Shadow COP30 as Trade Disputes Move to Centre Stage
At COP30 in Belém, trade disputes — notably tariffs on Chinese electric vehicles and the EU's Carbon Border Adjustment Mechanism — have moved to the forefront alongside traditional climate and finance debates. Developing nations argue these measures block affordable green technology and risk new barriers to decarbonization, while the EU insists CBAM is a climate tool that complies with WTO rules. With the WTO dispute system stalled, countries are airing grievances at the summit and exploring other venues for resolution. Delegates expect trade to shape the COP outcome, but not to resolve the underlying disagreements.
09:34 PM, 11/18/2025Economy
In Belém, the Brazilian city hosting COP30, the BYD Dolphin Mini — a Chinese hatchback — is a visible symbol of a wider debate: developing countries are buying affordable Chinese green technologies to speed decarbonization, while tariff and carbon-adjustment measures in wealthy markets are fueling trade tensions at the UN climate summit.
Trade rises to the top of the agenda
Trade-restrictive measures have emerged as one of the most contentious issues at this year’s COP. China and other major developing economies are pressing to ease market access for low-cost green technologies, while the European Union defends the Carbon Border Adjustment Mechanism (CBAM) as a climate policy designed to prevent carbon leakage.
'Free flow of green products'
The topic was spotlighted at a leaders’ summit in November when Chinese Vice Premier Ding Xuexiang urged countries to "remove trade barriers and ensure the free flow of quality green products." Delegates point to steep tariffs on Chinese electric vehicles — in some cases exceeding 45% in the EU and over 100% in North America — as a barrier to global decarbonization.
“We need to achieve radical decarbonization of the global economy in the next two decades,” said Alden Meyer of E3G. “Where trade policy impedes that goal, it becomes a legitimate subject for COP deliberations.”
CBAM and wider concerns
The EU says CBAM levels the playing field by pricing carbon for imports of emissions-intensive goods and discouraging companies from relocating to jurisdictions with weaker rules. Brussels stresses the measure was designed to comply with World Trade Organization (WTO) rules.
But the mechanism has alarmed several large developing economies — notably India and South Africa — and prompted criticism that the Global North is erecting new barriers that could hamper development. Some countries also worry that other EU rules, such as paused anti‑deforestation regulations requiring proof that commodities did not come from recently cleared land, could extend the reach of such measures.
With the WTO dispute settlement system effectively stalled, affected countries are seeking alternative forums to register complaints as the UK, Canada and others advance their own carbon-adjustment schemes.
David Waskow of the World Resources Institute cautioned that COP is unlikely to resolve these disputes outright: “Parties want to surface them and test positions — sometimes that leads to policy recalibration.” Even so, negotiators say trade language is likely to place lasting pressure on future climate and industrial policies.
What to expect
A draft text from the Brazilian presidency placed trade second among four priority items, signaling that discussions on tariffs, carbon pricing and market access will shape the summit’s final outcome. Observers say COP30 will elevate the debate, but that substantive resolution of trade-climate frictions will require follow-up in other forums and bilateral negotiations.