\n Published on 10\/11\/2025 – 12:41 GMT+1
\n \u2022Updated
\n 12:44\n <\/p>\n
The European Union and Brazil launched an appeal calling on other nations to recognise carbon pricing as a pragmatic way to cut emissions and fund the green transition, as world leaders gather at the COP30 United Nations climate summit.<\/p>\n
The global bid aims to form a coalition of countries willing to raise funds from carbon pollution and invest them in clean technologies to help cut greenhouse gas (GHG) emissions. <\/p>\n
The revenue would help countries to implement their national climate plans and continue working to deliver on the Paris Agreement adopted 10 years ago at COP21. <\/p>\n
The declaration<\/a>, unveiled on Friday as an output of the pre-COP30 leaders meeting, is a symbolic way to encourage world nations to develop strategies and establish carbon markets akin to the EU’s emissions trading scheme ETS, in place since 2005. <\/p>\n Under the ETS, the EU makes companies pay for the emissions they produce. The bloc’s carbon pricing system has slashed GHG emissions by 50% relative to 2005 and generated over \u20ac250 billion in revenue, according to the European Commission.<\/p>\n Commission President Ursula von der Leyen confirmed the bloc’s support for the declaration \u2014 endorsed by the likes of France, Germany, the UK, China and Brazil \u2014 and recognises carbon markets as a driver of climate action.<\/p>\n “Carbon pricing has become a central tool to reduce greenhouse gas emissions with a strong business case for the economy and for the people. We want to work closely with Brazil and with many like-minded partners on putting a price on carbon,” von der Leyen said.<\/p>\n Advocates of this mechanism argue that having a credible carbon market in place would give investors the certainty to unlock financing for projects that cut or capture GHG emissions, such as reforestation, renewable energy, or low-carbon industries. <\/p>\n Critics say that putting the spotlight on carbon pricing could divert attention from real emissions-cutting, like investing in restoring natural carbon sinks, like forests and oceans. <\/p>\n Carbon pricing jurisdictions<\/p>\n