Climate change has become a common challenge facing all humanity. How to promote emissions reduction and green development more efficiently and practically has become an important issue for the international community. Against this backdrop, Brazil, China and the European Union jointly initiated the Open Coalition on Compliance Carbon Markets, creating a new platform for deeper international cooperation and a faster green and low-carbon transition.

Cristina Reis (Photo provided to People's Daily app)

During the 30th United Nations Climate Change Conference held in Belém, Brazil, in November 2025, the Open Coalition on Compliance Carbon Markets was launched, receiving positive support from multiple countries and regions. In May 2026, Brazil, China and the European Union formally signed the coalition's founding documents. It established its objectives, scope of work and governance structure, marking the start of the coalition's substantive operational stage. Brazil serves as the first chair, while China and the European Union serve as co-chairs.

The coalition is founded on a shared understanding: no country can address climate change alone, and the green transition requires joint efforts. Experience has shown that carbon markets are an important policy tool for reducing emissions and achieving climate goals. By sending clear market signals and directing investment toward clean energy, low-carbon technologies and environmental protection, carbon markets help reconcile economic development with environmental sustainability, making the green transition more efficient and sustainable.

The role of carbon markets is expanding. Today, emissions trading systems are not only important instruments for reducing emissions but are also increasingly influencing industrial development and international trade. Reforms undertaken in the European Union, together with the continued development of carbon markets in countries such as China and Brazil, reflect this trend. How to enhance economic competitiveness while promoting green development has become an important question for countries worldwide.

China has played an important role in the global green and low-carbon transition. In recent years, China has remained committed to green and low-carbon development, steadily advanced its carbon peaking and carbon neutrality goals, vigorously developed new energy industries and established the world's largest carbon market in terms of covered emissions. China's experience in green development and carbon market construction has provided valuable reference points for global climate governance and for developing countries, including Brazil, seeking green transition pathways suited to their national circumstances.

As the world's largest developing country, China has consistently upheld the principle of common but differentiated responsibilities and actively promoted a fair, equitable and mutually beneficial system of global climate governance. China has shared experience and deepened cooperation with other developing countries, making important contributions to the global green transition.

Brazil attaches great importance to its cooperation with China in green development. As major emerging economies, the two countries enjoy strong complementarities in resources, industrial structures and development needs, and have broad prospects for cooperation in renewable energy, green finance and environmental protection. In recent years, such cooperation has continued to deepen. The establishment of the Open Coalition on Compliance Carbon Markets provides a new important platform for further policy coordination, experience-sharing and practical cooperation.

Brazil is advancing the construction of its national emissions trading system, which is expected to begin operation in 2027 and be fully implemented by 2030. For Brazil, carbon markets are not only an environmental policy tool but also an important driver of economic transformation. By making better use of low-carbon assets such as renewable energy and forest carbon sinks, promoting industrial decarbonization and channeling revenues toward job creation, social inclusion and reduced inequality, carbon markets can inject new momentum into Brazil's sustainable development.

The global green transition is accelerating. The Open Coalition on Compliance Carbon Markets is aligned with this trend. Members will strengthen exchanges and cooperation in areas such as carbon market rules, emissions accounting and market integrity, improve transparency and comparability among carbon markets, enhance market confidence and attract greater public and private investment, creating favorable conditions for deeper cooperation in climate finance, green investment and sustainable trade, and providing stronger support for the global low-carbon transition. Brazil stands ready to work with China and other partners to contribute to a cleaner, greener and more prosperous world.

(The author is the Extraordinary Secretary for Carbon Markets at Brazil's Ministry of Finance.)