Open Coalition on Compliance Carbon Markets Adopted at Belém Climate Summit to Catalyze Cost-Effective Climate Action

Environmental Defense Fund welcomes the declaration on the Open Coalition on Compliance Carbon Markets launched at the Belém Climate Summit today. The Open Coalition is a collaborative initiative for exchange on carbon pricing mechanisms, Monitoring, Reporting and Verification (MRV) systems, carbon accounting methodologies, and rules on the potential use of high integrity offsets, when applicable.

Already endorsed by Brazil, China, the European Union, United Kingdom, Canada, Chile, Germany, Mexico, Armenia, Zambia, France, the coalition remains open to new signatories. Currently, 55 countries have launched more than 100 carbon pricing instruments, according to the World Bank. The Open Coalition will encourage more countries to establish compliance carbon markets, providing a platform to share experiences and capacity building, especially for developing countries.

Alongside expansion, the Open Coalition is focused on making sure compliance carbon markets are ambitious, effective, and fair-offering cost-effective and high-integrity tool to help countries achieve their Nationally Determined Contributions under the Paris Agreement and ultimately drive toward a just transition.

It will also champion the adoption of new, innovative decarbonization technologies and establish new production standards that favor lower-carbon products, potentially creating a competitive advantage in trade and investment.

"Compliance carbon markets not only unlock innovation and investment in mitigation, but also supercharge our global ability to slash emissions at the lowest possible cost.

Expanding and optimizing the world's carbon markets can make climate ambition dramatically more accessible and economically affordable for all nations. Research shows that if we fully leverage carbon pricing tools, we could see cost savings of 40-60 percent in 2030.

Simply put, the economic efficiency of compliance markets unlocks opportunities for both cleaner air and a safer climate for communities. This is how we can affordably drive forward a global just transition that leaves no country behind.

EDF is firmly committed to supporting this effort, working in partnership with all stakeholders to make these powerful, climate-stabilizing outcomes the reality."

• Fred Krupp, President, Environmental Defense Fund