Countries launch global coalition to integrate regulated carbon markets

In one of the most consequential developments at COP30 — held in Belém in November 2025 — governments formally inaugurated the Open Coalition of Regulated Carbon Markets, a diplomatic initiative spearheaded by Brazil to align and interconnect national carbon-trading systems. The coalition already comprises 18 countries, including major powers such as China, the European Union, the United Kingdom, Canada and Mexico, marking what observers describe as a significant step toward the standardisation of global compliance carbon markets.

The proposal was introduced at the outset of COP30 by Brazil’s Ministry of Finance as part of the country’s broader sustainable-finance and climate-governance agenda. The initiative seeks to establish a “voluntary international forum” capable of drawing together disparate carbon-pricing regimes — from cap-and-trade systems and carbon taxes to existing emissions-trading schemes — under a shared framework of rules.

According to the ministry’s head of Sustainable Finance, the coalition arrives at COP30 strengthened by domestic progress since 2023, including the establishment of the Brazilian Emissions Trading Scheme (SBCE) and the creation of a dedicated federal carbon-market secretariat. These institutional advances, officials argue, grant Brazil both legitimacy and practical experience to lead the effort.

Membership is voluntary and open to countries willing to collaborate. Core objectives include:

• Harmonising Monitoring, Reporting and Verification (MRV) protocols;

• Establishing common accounting rules for emissions and credits to enable interoperability among compliance systems;

• Defining best-practice standards for emissions offsets, thereby unifying criteria for regulated carbon credits.

  
  

Brazil will preside over the coalition in its initial phase, though the arrangement is intended to be institutional in nature, with shared governance and provisions for future members.

Current membership

Alongside Brazil, the coalition includes:

China; the European Union; the United Kingdom; Canada; Chile; Germany; Mexico; Armenia; Zambia; France; Rwanda; Andorra; Guinea; New Zealand; Monaco; Singapore; and Norway.

Collectively, these jurisdictions represent a substantial share of global emissions — an attribute that lends the coalition both political weight and potential market-shaping power.

Expected impacts

Experts involved in the negotiations estimate that, over the medium term, the coalition could deliver:

• Greater liquidity and predictability for regulated carbon markets, encouraging investment in low-carbon projects and clean-technology deployment;

• Enhanced integrity and credibility of credits and offset mechanisms, enabled by robust and harmonised MRV standards;

• Structured decarbonisation pathways, allowing industries and national economies to plan orderly and equitable emission-reduction trajectories;

• Deeper international cooperation and technology transfer, as countries with established systems share operational expertise and support emerging economies in adopting best practices.

  
  

Why the coalition matters — and why it is drawing attention

At a time when international climate negotiations face persistent deadlock — particularly around fossil-fuel phase-out — Brazil’s initiative constitutes a pragmatic attempt to advance decarbonisation through market-based mechanisms and regulatory alignment, rather than relying solely on complex multilateral accords. For emerging economies, the coalition offers a viable route to sustainable development that is simultaneously compatible with global market dynamics.

Regulatory harmonisation may also ease geopolitical frictions surrounding policies such as carbon border adjustment mechanisms, by aligning emissions-pricing structures and reducing the risk of discriminatory trade measures.

Ultimately, the coalition positions itself as an innovative model of climate governance: instead of waiting for universal consensus, it builds momentum through voluntary adherence, technical convergence and multilateral cooperation — with the potential to scale rapidly and deliver tangible impact.

Sources:

• Coalizão de mercado de carbono recebe adesão de 18 países na COP30. COP30 Brasil, 15 nov 2025. (COP30 Brasil)

• Proposta de criação da Coalizão Aberta para Mercados Regulados de Carbono chega fortalecida à COP 30. Ministério da Fazenda, 05 nov 2025. (Serviços e Informações do Brasil)

• Brasil coloca de pé coalizão para integrar mercados de carbono. Capital Reset, 15 nov 2025. (Reset)

• Coalizão mundial de mercados carbono proposta pelo Brasil tem adesão de onze países. COP30 Brasil, 07 nov 2025. (COP30 Brasil)

• Saiba quais países aderiram à Coalizão: cobertura da EBC Rádio Gov, 17 nov 2025. (rádio gov)

• Análise do potencial e funcionamento da coalizão: JOTA — diálogos da COP30, 2025. (JOTA Jornalismo)