By Kate Abnett

BRUSSELS, Reuters – China has demanded that countries hold talks at next week’s COP29 UN climate summit on carbon border taxes and other “restrictive trade measures” that Beijing says hurt developing countries, according to a document seen by Reuters.

The demand raises the possibility that rising trade tensions between major economies could disrupt United Nations climate talks this year, which begin in Baku, Azerbaijan, on November 11.

China, on behalf of the BASIC group of countries that includes Brazil, India and South Africa, has submitted a proposal to the UN climate body (UNFCCC) to add talks at COP29 on “concerns about unilateral restrictive trade measures related to climate change”. The document showed the agenda.

BASIC countries have harshly criticized the EU’s trade-related climate policies, including anti-deforestation legislation and a carbon border tax that would impose fees on imports of high-carbon goods.

China and India have criticized the carbon border tax as protectionist and said it unfairly penalizes developing countries.

The EU says European industries that pay fees on CO2 emissions must stop being reduced by cheap imports from countries with weaker climate policies.

A UNFCCC spokesperson confirmed that it had received the BASIC countries’ submission.

China’s foreign ministry did not immediately respond to a request for comment.

Unless BASIC countries withdraw their proposal, this proposal will be presented at the beginning of COP29 to countries who must agree to the conference agenda by consensus.

Any disagreement over the COP29 agenda could delay the start of negotiations and shorten the time left for countries to reach agreement; This includes approving potentially hundreds of billions of dollars in new financing to combat climate change, including their main mandate.

What will come to the agenda of the UN climate summit may have major consequences.

The agreement to add a highly controversial agenda item on financial payments for climate-related damage to the 2022 UN climate summit has led to the summit creating the world’s first fund to provide this cash.

Diplomats said the European Union would likely oppose the BASIC proposal. The EU has previously said trade issues should be discussed at the World Trade Organization rather than UN climate talks.

A European Commission spokesman did not respond to a request for comment.

In the presentation of the BASIC countries, it was stated that COP29 should hold discussions on the concerns of developing countries regarding climate policies implemented by developed countries and affecting trade.

The report said countries should “collectively oppose any measures to restrict trade and investment and the creation of new green trade barriers, such as unilateral carbon border adjustment measures and due diligence requirements.”

(Reporting by Kate Abnett in Brussels; Additional reporting by Joe Cash in Beijing, Editing by Andrew Gray and Alex Richardson)