Open Coalition on Compliance Carbon Markets

The Open Coalition on Compliance Carbon Markets also known as Climate Coalition, was created during the United Nations Climate Conference 2025 COP30 in Belém, Brazil. The plan aims to establish a global emissions cap starting at a level close to current emissions and then gradually reducing it until reaching net zero by 2050. For any activity that generates emissions, participants would be required to purchase allowances. As the cap declines, allowance prices would rise, creating an incentive for decarbonization. A border adjustment mechanism would also be implemented and jointly governed by all participants. Lower-income countries may pay reduced amounts or be exempt from some costs, and part of the revenue would be used to support their climate-related needs.^[1][2] By 15 November, 18 countries had joined including the European Union, China, Brazil.^[3] The coalition is considered as one of the main results of COP 30.^[4]

The proposal was considered a potential major outcome of COP30. One of the targets is to address some problems linked to the EU Carbon Border Adjustment Mechanism. Rafael Dubeux, deputy executive secretary of Brazil's Ministry of Finance, stated: "All that is needed is a coalition strong enough to move forward. If it includes Brazil, the EU, and China, it could encourage others to join.”^[1]

The coalition is supported by a group of academics around MIT. The MIT group's report proposes a carbon price floor of US$50 per tonne of CO2 equivalent for all Climate Coalition members, with border carbon adjustment. According to the report, the implementation of the plan will result in:^[5]

• Coalition members reducing emissions seven times faster than they do today.
• Approximately USD 200 billion per year for clean-energy and social programs.
• A moderate rise in prices in certain industries, with minimal losses for producers.

Countries can receive significant revenue from participating in the project, if it will be realized. In the Uniform Price scenario with a price of 50 dollars per ton of CO2, for 5 countries the revenue can represent more than 1% of the overall governmental revenue. In the Graduated Price scenario only for 4 countries.^[6]

The Climate Coalition would work similarly to the G7 proposal of a climate club. The proposal is distinct from the Brazilian proposal to launch a UNFCCC / World Trade Organization forum on climate and trade.^[7]

According to a research published in Nature the coalition can close the emissions gap between the current trajectory which direct the world to a 2.8 degrees warming by 2100, and the goals of the Paris Agreement. It can redirect the needed amount of money to climate action. But for this it will need an appropriate political climate.^[8]

The EU and China joined Brazil as members, as well as the UK, Canada, Chile, Mexico, Armenia, Zambia, Rwanda, Andorra, Guinea, New Zealand, Monaco, Singapore, and Norway.^[9] By 15 November, 18 countries had joined.^[3] The coalition is considered as one of the main results of COP 30. It is expected to advance cohesion on carbon pricing and climate action.^[4] The coalition intend to begin with: "sharing best practices in monitoring, reporting and verification, and in establishing common carbon accounting standards."^[10]

According to the Niskanen center the members of the coalition after COP 30, are working on "mandatory carbon pricing frameworks, incentivizing emission reduction domestically and providing a competitive edge when facing border charges on exports." This can have a strong impact on the United States of America, because 7 of them account for more than 2/3 of U.S. goods exports. Generally, the American industry is considered as low carbon, however some policies of Donald Trump are fastly destroying this advantage. For American exporters to not lose their carbon advantage, the United States needs to implement a mechanism for cutting emissions.^[11]

On the 7 of January the Council of the European Union is expected to begin discussion about the "first step of the non-binding instrument (NBI) procedure".^[12] On 14 of January, the council approved beginning negotiations about it.^[13] The European Commission support the coalition, for strenghten climate action and improve its international relations.^[14] The International Carbon Action Partnership intends to work closely with it, and Brazil's membership should facilitate it.^[15]

According to the European Commission, the work of the EU and Brazil will allow the formal launch of the Coalition in 2026. The aim is to sustain political momentum and improve cooperation between countries with compliance markets. The creation of the coalition is considered as part of global progress on carbon pricing.^[17]

In March 2026, the Climate Coalitions Working Group (GCPP) announced that it is now focused on the practical implementation of the coalition, working directly with governments, policymakers and industry across the world, including in Southeast Asia, Africa and more. This includes advancing mutual recognition of carbon pricing systems, creating tools to help governments navigating border carbon adjustments and carbon pricing. The group is working in cooperation with the Coalition of Finance Ministers for Climate Action. The aim is to create a "durable institutional architecture—aligning climate ambition with economic competitiveness."^[18]