COP30: EU backs global carbon market alliance to crack down on CO2 emissions

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🗞️ Driving the news: Ahead of COP30, the European Union and Brazil have launched a joint call urging countries to adopt carbon pricing and market-based tools to cut emissions and finance climate action
• The initiative aims to build a coalition supporting emissions trading and carbon markets as core instruments to meet Paris Agreement goals
• Major economies including China, France, Germany, and the UK have backed the declaration

🔭 The context: The EU’s Emissions Trading System (ETS), active since 2005, has cut industrial emissions by 50% and raised over €250 billion in revenue
• Globally, carbon pricing now covers 28% of greenhouse gas emissions across 55 jurisdictions
• By promoting its model internationally, the EU—together with Brazil—is seeking to shape global carbon market rules and expand cooperation under Article 6 of the Paris Agreement

🌍 Why it matters for the planet: Carbon pricing can create powerful financial incentives to reduce emissions, accelerate clean technology adoption, and scale climate finance
• Funds raised through emissions trading can support reforestation, renewable energy, and low-carbon infrastructure
• Yet, critics caution that markets must be carefully designed to avoid loopholes for major polluters and prevent displacement of direct investment in natural carbon sinks

⏭️ What's next: The declaration will inform negotiations at COP30, where parties will debate technical rules for global carbon trading, including credit verification, accounting, and finance flows to developing nations
• The EU and Brazil aim to formalise a coalition by mid-2026 to influence the architecture of global carbon markets ahead of COP30
• Implementation will be critical to ensure equity and environmental integrity

💬 One quote: “Carbon pricing has become a central tool to reduce greenhouse gas emissions with a strong business case for the economy and for the people,” — Ursula von der Leyen, President of the European Commission

📈 One stat: Carbon pricing now applies to 28% of global GHG emissions across 55 jurisdictions, according to the World Bank (2025)

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