Brazil’s proposal to establish an “Open Coalition on Compliance Carbon Markets” has secured backing from 11 countries, including China, the European Union and the United Kingdom, marking a major step toward aligning global carbon pricing frameworks.
The coalition was endorsed on Friday at the Climate Summit of Belém by Brazil, China, the EU, the U.K., Canada, Chile, Germany, Mexico, Armenia, Zambia and France. The declaration remains open for new signatories, according to Brazil’s Finance Ministry.
The group aims to exchange experiences on monitoring, reporting and verification, or MRV systems, carbon accounting methodologies, and the potential use of high-integrity carbon credits. It also seeks to harmonize rules governing regulated carbon markets to support decarbonization efforts and enhance transparency.
Platform to Align Carbon Market Standards
The declaration recognizes the growing relevance of compliance carbon markets and pricing mechanisms in driving cost-effective emission reductions and supporting national climate targets under the Paris Agreement.
It also stresses the importance of interoperability and cooperation among markets to promote environmental integrity and just transitions.
“The regulated carbon market is one of the most efficient ways to reduce greenhouse gas emissions,” said Rafael Dubeux, deputy executive secretary of Brazil’s Finance Ministry. “By fostering convergence with some of the world’s largest economies, we are paving the way for harmonized standards.”
He added that coordination among countries would enable deeper interoperability of carbon markets, helping to reduce fossil fuel dependence in line with the COP28 goal of a fair and orderly transition.
Coalition Represents 20% of Global Emissions
Cristina Reis, secretary for carbon market affairs at the ministry, said coalition members already account for about 20 percent of global emissions, much of which is covered by existing pricing mechanisms such as the EU Emissions Trading System and China’s national carbon market.
“This is a very positive signal that strengthens international cooperation,” Reis said. “Through this financial, technological, and governance-based market tool, we take an important step toward greater climate ambition.”
Focus on Capacity Building and Interoperability
According to the coalition’s founding text, members intend to advance coordination on developing compliance carbon markets consistent with the Paris Agreement’s goals.
The platform will enable countries to share experiences, support developing nations with capacity building, and explore interoperability among systems.
The document also emphasizes broad participation and complementarity with other multilateral climate initiatives, ensuring an inclusive and neutral approach to technology and policy development.
The initiative is one of Brazil’s key agenda items at COP30, which it will host next year in Belém.
