{
  "id": 7587366,
  "title": "Can the Global South align the world’s carbon markets?",
  "url": "https://urgent.news/2026/09/15/can-the-global-south-align-the-worlds-carbon-markets",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-15T16:14:20.000Z",
  "source": {
    "name": "Dialogue Earth",
    "slug": "dialogue-earth",
    "url": "https://dialogue.earth/en/climate/can-the-global-south-align-the-worlds-carbon-markets/"
  },
  "original_language": "en",
  "account": "Carbon markets have long been envisioned as a means to combat climate change through the application of market principles and tradeable emissions rights. However, despite numerous attempts, these markets remain fragmented, with dozens of distinct systems each having their own criteria, procedures, and pricing mechanisms. Now, Brazil is taking the helm of a new international body, the Open Coalition on Compliance Carbon Markets (OCCCM), with the aim of harmonizing these disparate carbon markets. The coalition launched in May and seeks to establish common standards for monitoring, accounting, and integrity while balancing the interests of Global South nations with those of more established markets. Catherine Wolfram, a professor at MIT, emphasizes the significance of such discussions, noting that they represent a substantial step forward. Wolfram’s research, part of the Harvard-MIT Global Climate Policy Project, suggests that coordination among 21 countries and the European Union could lead to a significant reduction in emissions and generate an additional USD 185 billion in annual revenue. However, the OCCCM faces significant hurdles. Global South nations are wary that the mechanism could be exploited by wealthier countries to impose a uniform carbon price, which could prove burdensome for developing industries. Moreover, the lack of trusted, cross-border emissions accounting presents another obstacle. Brazil, the current chair of the OCCCM, hopes to accelerate its development during the China Carbon Market Conference in Wuhan, China. The coalition's ultimate success will hinge on the diplomatic skills of Brazilian officials in navigating a diverse range of member interests and addressing challenging technical issues. Currently, 87 carbon pricing policies are in place globally, covering roughly 30% of global emissions and generating USD 107 billion in 2025. Nevertheless, the disparities in carbon costs among developed and developing countries remain stark, with prices reaching as low as USD 4 per tonne in Latin America compared to USD 68 per tonne in Europe and Central Asia. The EU's Carbon Border Adjustment Mechanism (CBAM) aims to address this issue by imposing tariffs on imports based on the carbon pricing within the EU Emissions Trading System. Brazil hopes that once carbon markets recognize each other's rules, border adjustment mechanisms like the CBAM will become obsolete. Brazil's leadership of the OCCCM is seen as a continuation of its COP presidency and an attempt to position itself as a global leader in climate action. However, the country's own carbon market, the Brazilian Emissions Trading System (SBCE), is still in the design phase with trading expected to commence in 2030. Critics argue that this could undermine Brazil's efforts to lead the charge on carbon market integration. Wolfram stresses that Brazil's credibility in this endeavor will depend on the successful implementation of its market at home. \"I think it needs a functioning market.\" She also points to the outcome of Brazil's upcoming presidential election, as the incumbent president's victory will be crucial for the continuation of the SBCE. Brazil's national secretary for the green economy, decarbonisation, and bioindustry, Júlia Cruz, acknowledges the country's strong track record in climate negotiations and emphasizes the importance of contributing to the climate debate through the development of technical standards for the OCCCM.",
  "summary": "Brazil will chair a new body in an ambitious effort to align the world’s fragmented carbon markets – despite its own not launching until 2030 The post Can the Global South align the world’s carbon markets? appeared first on Dialogue Earth .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}