EU, Brazil and China launch coalition to boost integrity and effectiveness of carbon markets
Yesterday, the European Commission, on behalf of the European Union, together with Brazil and China, officially launched the Open Coalition on Compliance Carbon Markets in a signing ceremony in Florence, Italy. The new international initiative aims to strengthen global cooperation on carbon pricing. It follows the declaration endorsed by Commission President Ursula von der Leyen at COP30 in Belem, Brazil, in November 2025.
The Coalition will enhance the effectiveness, transparency and integrity of domestic carbon markets worldwide, supporting the delivery of the Paris Agreement. It sends a strong signal of the shared commitment to this global agreement and renewed multilateral cooperation. It reinforces the role of carbon markets as a central pillar of the global transition to climate neutrality, while supporting economic modernisation and competitiveness.
With the adoption of the related terms of reference, the Open Coalition will provide a platform for cooperation on the development and strengthening of domestic carbon markets and carbon pricing policies. Its work will focus on key elements such as robust monitoring, reporting and verification systems, sound carbon accounting methodologies and the potential use of high integrity offsets to promote environmental integrity.
It is now open to countries with nationwide compliance carbon markets, such as emissions trading systems or a carbon tax. Subnational authorities operating a carbon pricing scheme can participate as observers. New Zealand and Germany are the first countries to join as members, following the EU, Brazil and China’s lead, with several others expected to follow. Brazil will chair the Coalition for the first two years, with China and the Commission as Co-Chairs. Next steps include establishing the Coalition’s Secretariat and developing a work plan to be adopted at the Carbon Market Conference taking place on 15 September 2026 in Wuhan, China.
