BRICS: Wealthy Nations Must Fund Global South Energy Transition

At the 17th BRICS Summit in Rio de Janeiro, leaders of Brazil, Russia, India, China, South Africa, and newly joined member states declared that developed countries must take responsibility for financing the energy transition in the Global South. In a joint statement, the bloc emphasized that climate finance is an obligation of developed nations toward developing ones.

Why It Matters

• Fossil fuel reality: BRICS leaders acknowledged that fossil fuels continue to play a critical role in many developing economies. They called for a more balanced and realistic approach to the energy transition that considers the economic circumstances of emerging markets.
• New financial mechanisms: The group expressed support for initiatives such as Brazil’s “Tropical Forests Forever Facility” and called for more robust climate finance channels, including through the BRICS New Development Bank and other South–South financing mechanisms.
• Opposition to protectionism: The bloc criticized policies such as carbon border taxes, labeling them discriminatory and harmful to global trade. They argued such measures penalize developing countries and distort fair competition.

Broader Context

BRICS reiterated the principle of “common but differentiated responsibilities,” arguing that developed nations, having historically contributed the most to global emissions, must provide greater financial support to help emerging economies shift to clean energy. The group also highlighted the need to enhance regional cooperation and financing solutions in local currencies, reducing reliance on Western-dominated financial systems.

The call for increased climate finance comes at a time when developing regions, especially Southeast Asia and parts of Africa and Latin America, face significant investment gaps in clean energy infrastructure. While the demand for sustainable development rises, access to affordable funding remains limited.

Summary

BRICS leaders are urging developed nations to meet their climate finance commitments and share the cost of the global energy transition. The bloc is also looking inward, strengthening South–South cooperation and financial resilience through their own institutions. Their united stance marks a growing push for climate equity and a rebalancing of global climate diplomacy.