EU, China Join Brazil-Led Carbon Market Coalition
(Bloomberg) -- The European Union and China agreed to join Brazil in a coalition aimed at improving collaboration on carbon markets — one of the main innovations the South American nation is bringing to the COP30 climate summit.
The coalition also includes the UK, Canada, Chile, Armenia, Zambia, France, Mexico and Germany was announced in Belém on Friday. The initiative seeks to bring countries together to align practices and standards in carbon markets.
The statement acknowledges the growing relevance of regulated carbon markets and carbon pricing mechanisms, and the role these instruments play in driving decarbonization and supporting countries in advancing their climate action goals.
Brazil believes that integrating carbon markets could be one of the most important legacies of COP30 as it would facilitate trade and ultimately help to curb emissions. There are currently more than 40 carbon taxes and 35 emissions trading systems worldwide.
National emission trading systems typically set emissions limits, with companies that emit less than their assigned cap able to sell allowances to those that exceed theirs.
Brazil’s proposal aims to develop common standards for monitoring, reporting and verification of carbon markets. The coalition remains open to other countries that may choose to join later.
(Updates throughout to add Brazil’s announcement)
©2025 Bloomberg L.P.
