In a world where economic and geopolitical tectonics seem to shift almost daily, the BRICS bloc—now expanded to include Egypt, UAE, Ethiopia, Indonesia, and Iran—finds itself at a pivotal crossroads. This September, as financial markets and policy makers grapple with the implications of the US Federal Reserve’s latest rate cut and the evolving global order, BRICS nations are stepping forward to redefine their roles on the world stage, especially in climate leadership, economic policy, and international cooperation.
On September 17, 2025, the Federal Reserve announced its first interest rate reduction since December 2024, lowering its benchmark by a quarter percentage point to a range of 4%–4.25%. As reported by The Politico, Chair Jerome Powell explained, “The labor market is no longer as strong as we had hoped. Inflation remains elevated, and we must balance our mandate to promote employment while ensuring price stability.” The announcement came amid troubling economic signals: the US economy added only 22,000 jobs in August, unemployment claims soared to a four-year high of 263,000, and wage growth stagnated. These factors, economists say, could slow consumer spending, a traditional engine of US economic growth.
Financial markets reacted swiftly. US equities posted modest gains, and bond yields adjusted downward to reflect the new policy. Traders and analysts now anticipate further rate cuts later this year if economic indicators continue to worsen. Yet, as the US attempts to shore up its domestic economy, global ramifications are already being felt. Lower US rates often encourage capital inflows to emerging markets, influence currency valuations, and shift international investment patterns. For countries within the BRICS bloc, these changes present both opportunities and challenges, especially as they seek to assert greater influence in global governance and economic affairs.
Meanwhile, on September 9, 2025, Deputy Minister Zuko Godlimpi delivered a keynote address at South Africa’s 19th Annual Conference on Competition Law, Economics and Policy. According to the Department of Trade, Industry and Competition (DTIC), Godlimpi called for a new approach to competition law, one that emphasizes growth, inclusion, re-industrialisation, and localisation. “These challenges highlight the need to strengthen key policy initiatives such as re-industrialisation, localisation, and inclusive growth. The DTIC is committed to driving South Africa’s economic transformation and we are striving for an economy where inclusive industrialisation is a reality, and not a distant aspiration,” Godlimpi stated.
This conference, held alongside the 9th BRICS International Competition Conference, underscored the growing importance of cooperation among the now 11-member BRICS group. Godlimpi emphasized, “We are going to build mutually beneficial regional and global relations, while advancing South Africa’s trade, industrial policy, and economic development goals. In a world that is increasingly being shaped by shifting geopolitical dynamics and economic uncertainty, our international engagements must also be strategic.”
These remarks echo a broader trend within BRICS: the bloc is increasingly positioning itself as a counterweight to Western economic dominance, particularly as the US faces its own internal and external challenges. The expansion of BRICS in 2024 to include Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE (with Saudi Arabia yet to formally accept membership) signals a desire for greater influence. According to Carbon Brief, BRICS members now account for 27% of global GDP, 49% of the world’s population, and 52% of global emissions as of 2025. This demographic and economic heft gives the group significant leverage in setting international agendas, especially on climate and economic policy.
Climate change, in particular, has become a central pillar for BRICS cooperation. This year, Chinese President Xi Jinping ramped up foreign-policy engagements, including his first international climate speech since 2021 at a Brazil-hosted event in April. Xi’s participation highlighted China’s ongoing commitment to climate action and its growing partnership with Brazil. COP30 executive director Ana Toni, speaking at a September event at Tsinghua University, noted, “BRICS countries have realised that climate is not just a financial issue or a niche, but rather a pillar for prosperity, development and growth.”
The BRICS and its sub-group, the BASIC bloc (Brazil, China, India, South Africa), have become increasingly vocal in international climate negotiations. At COP28 and COP29, they submitted proposals to address unilateral trade measures related to climate change—such as the EU’s carbon border adjustment mechanism—though these were denied. Still, the group’s collective action is gaining momentum. In July, BRICS leaders signed a joint declaration demanding “accessible, timely and affordable climate finance” for developing countries, reaffirming their unity in pursuing the goals of the Paris Agreement.
Yet, internal differences remain. While Brazil and China are seen as driving forces—Brazil currently chairs both the G20 and BRICS—there are divergences in approach. Jennifer Allan of Cardiff University told Carbon Brief that Brazil’s proposal at COP26 for emerging economies to adopt stricter emissions targets was opposed by China, which prefers to maintain a clear distinction between developed and developing nations. India and China, despite occasional rivalry, remain united on the principle of common but differentiated responsibilities in climate negotiations, though how this plays out in practice can vary.
Fossil fuels continue to play a significant role in the BRICS energy landscape, but the group is undergoing a notable shift. Non-fossil power, propelled by rapid growth in renewables in China, India, and Brazil, accounted for 53% of installed electricity generating capacity in BRICS countries in 2024, according to Global Energy Monitor. While Russia, Iran, and the UAE remain major fossil fuel exporters, the economic case for solar and wind is increasingly compelling. China, in particular, dominates global clean-tech manufacturing, producing over 80% of solar panels, 70% of electric vehicles, and 75% of batteries. In 2024, clean-energy industries made up more than 10% of China’s GDP and drove a quarter of its economic growth.
This economic transformation is not just about domestic consumption. In 2024, half of China’s exports of solar and wind equipment and electric vehicles went to the global south, supporting emissions reductions and development in partner countries. According to Dialogue Earth, China’s clean-energy exports in 2024 alone are expected to reduce global emissions by 1%, or about 4 billion tonnes of CO2 over their lifetimes.
Despite calls for China to assume a more prominent climate leadership role, the country remains cautious. Climate envoy Liu Zhenmin told China Newsweek that such calls are “the west giving us a ‘tall hat’”—a phrase suggesting flattery with ulterior motives. Nevertheless, China continues to align with other BRICS nations when it serves its interests, reinforcing its identity as a developing country in climate negotiations.
For South Africa and other BRICS members, leveraging collective influence is seen as essential for navigating global uncertainty. The South African Competition Commission, for example, is tasked with promoting a more inclusive and resilient economy, addressing market concentration, and supporting small and medium enterprises. Recent developments include the approval of a major industrial acquisition by a Saudi group and a ZAR 30 million settlement over anti-competitive behavior, while legislation to overhaul financial regulation is under cabinet review.
As the US recalibrates its monetary policy and the BRICS bloc expands its economic and geopolitical ambitions, the stage is set for a new era of multipolar cooperation—and competition. Whether the BRICS can sustain unity and translate their demographic and economic weight into effective global leadership remains to be seen, but their growing influence is undeniable. The world is watching as these emerging powers chart a course through uncertain times, with climate, competition, and cooperation at the heart of their agenda.
