EU, Brazil and China Launch Global Carbon Markets Coalition
The European Commission, alongside Brazil and China, has officially launched the Open Coalition on Compliance Carbon Markets, a new international initiative aimed at strengthening the integrity and effectiveness of carbon pricing systems worldwide.
The coalition was formally unveiled on 7 May during a constitutional meeting and signing ceremony held in Florence. The initiative builds on commitments made during COP30 in Belém in November 2025, where world leaders, including Ursula von der Leyen, endorsed greater international cooperation on carbon pricing.
The coalition aims to improve the transparency, robustness and environmental integrity of domestic carbon markets, including emissions trading systems and carbon taxes. It will provide a platform for countries to collaborate on carbon pricing policy design, monitoring and verification standards, carbon accounting methodologies and the use of high-integrity carbon offsets.
The launch event included participation from Kurt Vandenberghe, Director-General for Climate Action at the European Commission, China’s Vice Minister of Ecology and Environment Li Gao, and Brazil’s Extraordinary Secretary for Carbon Markets Cristina Reis.
Under the newly adopted Terms of Reference, the coalition is open to countries operating nationwide compliance carbon markets, while subnational authorities with carbon pricing schemes may participate as observers.
New Zealand and Germany are the first additional countries to join the coalition, with more members expected in the coming months. Brazil will serve as Chair during the coalition’s first two years, with China and the European Commission acting as Co-Chairs.
The coalition’s next steps include establishing a permanent secretariat and developing a formal work plan ahead of the Carbon Market Conference scheduled for 15 September 2026 in Wuhan.
According to the European Commission, around 80 carbon pricing systems are currently in operation across 50 countries globally, underlining the importance of international coordination and shared standards.
Kurt Vandenberghe said the initiative would help strengthen emissions trading systems while supporting economic growth, innovation and industrial modernisation. He highlighted the success of the European Union Emissions Trading System, which he said has helped reduce emissions in covered sectors by 50% while generating €260 billion in revenues for decarbonisation and innovation projects.
The coalition also intends to explore how carbon accounting approaches can be better aligned internationally and how carbon credit quality standards can be strengthened under Article 6.4 of the Paris Agreement framework.
The initiative is being positioned as both a technical collaboration platform and a broader signal of renewed international cooperation on climate action and carbon market development.
