The European Commission, alongside Brazil and China, has officially inaugurated the Open Coalition on Compliance Carbon Markets, a new international initiative designed to standardise and strengthen global cooperation on carbon pricing.
The launch follows a declaration endorsed by Commission President Ursula von der Leyen and other world leaders during COP30 in Belém, Brazil, in late 2025. The coalition aims to serve as a high-level platform for nations to align their domestic emissions trading systems (ETS) and carbon tax policies to meet the goals of the Paris Agreement.
The coalition will focus on enhancing the transparency and effectiveness of the estimated 80 carbon pricing schemes currently operating across 50 countries. Key technical priorities include the development of robust monitoring, reporting, and verification (MRV) systems, as well as the implementation of sound carbon accounting methodologies.
A core objective is to ensure the environmental integrity of high-quality offsets, encouraging a “race to the top” for carbon credit quality. This work will build upon existing frameworks, such as the Article 6.4 Crediting Mechanism of the Paris Agreement and the efforts of the G7-led Climate Club.
The constitutional meeting in Florence saw the adoption of the coalition’s Terms of Reference, with leadership roles allocated as follows:
- Chair: Brazil (first two-year term)
- Co-Chairs: China and the European Commission
The coalition is open to any country operating a nationwide compliance carbon market. Subnational authorities with carbon pricing schemes are eligible to participate as observers. New Zealand and Germany have already become the first countries to join the founding trio as members.
For the European Union, the coalition offers a venue to share two decades of experience from the EU Emissions Trading System. A key priority for the upcoming workplan is to assess how different carbon accounting methods can be compared to facilitate corporate compliance for businesses operating across multiple international systems.
“This sends a strong signal of renewed multilateral cooperation,” the Commission noted, highlighting the role of carbon markets as a central pillar in the transition to climate neutrality while maintaining industrial competitiveness.
The coalition is now moving to establish a formal Secretariat. A detailed work plan is expected to be adopted during the Carbon Market Conference, scheduled for 15 September 2026 in Wuhan, China.
