EU backs global carbon market alliance to crack down on CO2 emissions
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The European Union has called on other nations to adopt carbon pricing mechanisms and develop carbon markets as tools to finance global climate action. The appeal, launched ahead of the COP30 United Nations climate summit, encourages countries to raise funds from carbon emissions and channel them into clean technologies that reduce greenhouse gas (GHG) emissions. Proponents say the approach supports the implementation of national climate plans and helps nations meet their commitments under the Paris Agreement, adopted at COP21 ten years ago.
The declaration highlights carbon markets as a proven strategy, drawing on the EU’s emissions trading scheme (ETS) established in 2005. Under the ETS, companies pay for the emissions they produce, a system that has halved the bloc’s GHG emissions relative to 2005 and generated more than €250 billion in revenue. European Commission President Ursula von der Leyen emphasised the economic and environmental benefits of carbon pricing and reaffirmed the EU’s commitment to working with Brazil and other partners.
Supporters argue that robust carbon markets provide investors with certainty to fund emission-reduction projects, including renewable energy, low-carbon industries, and reforestation. Critics caution, however, that an excessive focus on carbon pricing could divert attention from direct climate action, such as restoring natural carbon sinks like forests and oceans.
