China and the European Union announced their joining of the coalition launched by the Brazilian government to create a global carbon market, during the Leaders' Summit in Belém. The announcement came on the eve of COP30 and is viewed as a strategic step to reduce global emissions. In total, eight countries plus the European bloc are participating in the initiative.
The announcement of China and the European Union's joining of the coalition was made on Friday (7), during the Leaders' Summit in Belém, preceding COP30, scheduled to start on Monday (10). The EU's participation was confirmed by European Commission President Ursula von der Leyen, who highlighted the importance of carbon pricing. "Carbon pricing has become a central tool to reduce greenhouse gas emissions, with a strong business case for the economy and people," she stated. "We want to work closely with Brazil and many partners who share this vision."
China's adhesion was confirmed by President Lula at the opening of the session on the ten years of the Paris Agreement. In total, eight countries plus the EU joined, fewer than the 22 initially planned by Brazil: Brazil, China, European Union, United Kingdom, Canada, Chile, Germany, Mexico, Armenia, Zambia, and France.
The global carbon market aims to integrate existing systems to standardize prices on greenhouse gas emissions. Currently, 17 G20 economies use carbon pricing, with the EU, China, and Australia operating emissions trading systems. Brazil approved its own, now in the regulation process. In these markets, companies receive emission caps; if exceeded, they buy quotas from those who emitted less. The EU's system is the most advanced, covering about 10,000 installations.
The presence of China—the world's largest emitter—and the EU—the fourth largest, combining members—is strategic for three reasons: emission volumes, protection against the EU's Carbon Border Adjustment Mechanism (CBAM) starting in 2026, criticized by developing countries, and political weight against criticisms, such as those expected from Donald Trump. Brazil's proposal envisions uniform or varying rules by economy size, with scenarios of a minimum US$50 per ton or US$25-75 based on development, exemptions for less developed nations, and a US$75 fee on goods from non-members.
"Through this coalition, countries create a path to decarbonize their economies at the lowest possible cost, potentially enabling investments in technological innovation and climate adaptation," said Rafael Dubeux, deputy executive secretary of the Finance Ministry. The exact format will still be defined, with a commitment to collaboration.