A new international initiative has been launched by the EU, Brazil, and China to strengthen cooperation on carbon pricing and the operation of domestic carbon markets.
The initiative, called the Open Coalition on Compliance Carbon Markets, builds on a declaration endorsed by European Commission President Ursula von der Leyen and other world leaders at COP30 in Belém, Brazil, in November 2025, the European Commission announced on Thursday night.
The Coalition will focus on improving how national carbon markets work, including monitoring, reporting and verification systems — checks used to track emissions and confirm compliance — as well as carbon accounting methods and the potential use of offsets.
A signing ceremony and the Coalition’s first meeting were held in Florence, Italy, with the European Union represented by the European Commission’s Director-General for Climate Action Kurt Vandenberghe, alongside China’s Vice Minister of Ecology and Environment Li Gao and Brazil’s Extraordinary Secretary for Carbon Markets Cristina Reis.
Who can join, and who is in so far
The Coalition is now open to countries with nationwide compliance carbon markets, such as emissions trading systems or a carbon tax, after its Terms of Reference were adopted, the Commission said.
New Zealand and Germany are the first countries to join as members, with Brazil set to chair the Coalition for its first two years and China and the European Commission acting as co-chairs.
Next steps include setting up a Secretariat and drawing up a work plan, which is due to be adopted at the Carbon Market Conference on 15 September 2026 in Wuhan, China.
There are around 80 carbon pricing schemes in place across 50 countries, while the EU Emissions Trading System has been in operation for more than 20 years.
The EU’s emissions trading system helped cut emissions by 50% in the sectors it covers and has raised EUR 260 billion in revenues, Vandenberghe said in a statement.
