The initiative aims to bring countries together to harmonize relevant practices and standards

The European Union and China agreed to join Brazil in a coalition aimed at improving cooperation in carbon markets ahead of the COP30 climate summit, Bloomberg reports.

The coalition was announced on November 7 in Belém and also includes the United Kingdom, Canada, Chile, Armenia, Zambia, France, Germany, Mexico, and Rwanda. The initiative aims to bring countries together to harmonize practices and standards in carbon markets.

Brazil believes that the integration of carbon markets could be one of the most important outcomes of COP30. This will promote trade and ultimately help reduce emissions.

The country’s proposal aims to develop common standards for monitoring, reporting, and verifying carbon markets. The coalition remains open to other countries that may decide to join.

According to a European Commission statement, the World Bank reports that as of June 2025, there are 80 carbon pricing instruments in place in more than 50 countries. These instruments include both emissions trading systems and carbon taxes, covering 28% of global greenhouse gas emissions.

Since its creation 20 years ago, the European ETS has reduced emissions in the covered sectors by 50% compared to 2005 levels and generated over €250 billion in auction revenues. Member states use these funds to finance climate and energy initiatives.

In April 2024, the EC established a working group on international carbon pricing and market diplomacy.