Key Impact Points:
- New international coalition: Kenya, Singapore, UK, France, Panama, and Peru form the first-ever government-led coalition to promote high-integrity carbon markets.
- Shared global principles coming by COP30: Coalition to issue cross-border guidance on corporate use of carbon credits to unlock private sector climate finance.
- Targeting $250 billion market by 2050: Aims to bridge the $1.3 trillion global climate finance gap without increasing debt for developing economies.
Landmark Coalition to Scale Voluntary Carbon Markets
The Governments of Kenya, Singapore, and the United Kingdom have launched the Coalition to Grow Carbon Markets—the first government-led initiative aimed at restoring and scaling private sector demand for high-integrity carbon credits. Announced during London Climate Action Week, the coalition includes founding members France and Panama, with Peru endorsing its mission and more countries expected to join.
“The UK is championing the responsible use of carbon credits… unlocking carbon markets as a trusted tool in accelerating towards net zero,” said Kerry McCarthy MP, Minister for Climate, UK Government.
Shared Principles Coming by COP30
The Coalition will deliver a unified set of principles on the voluntary use of carbon credits by COP30, providing much-needed clarity to companies integrating credits into their decarbonisation plans. This addresses long-standing concerns over reputational and legal risks, and the lack of credible guidance.
“This Coalition will help foster investor and stakeholder confidence… and strengthen the integrity and interoperability of these markets,” said Grace Fu, Singapore’s Minister for Sustainability and the Environment.
The guidance aims to enable consistent use of high-quality credits across jurisdictions, supporting businesses in their climate ambitions while helping finance flow to Emerging Markets and Developing Economies (EMDEs).
Unlocking Climate Finance Without New Debt
By strengthening confidence in carbon markets, the Coalition hopes to catalyze up to $250 billion in climate-related finance by 2050, helping to close the $1.3 trillion annual climate finance gap without increasing public debt.
“Kenya’s leadership in this Coalition reflects our commitment to transforming how climate finance reaches developing nations,” said Ali Mohamed, Kenya Special Climate Envoy and Co-Chair of the Coalition.
Carbon markets are seen as vital tools to accelerate emissions reductions, finance nature restoration, and drive investment in clean energy and sustainable agriculture.
Broad Global Backing
The International Chamber of Commerce (ICC) and World Business Council for Sustainable Development (WBCSD) will support the Coalition, alongside the Integrity Council for the Voluntary Carbon Market (ICVCM), ensuring alignment between supply and demand.
“This new Coalition is a welcome response to the clear call from the global business community to bring clarity, build confidence and integrity for carbon credit buyers,” said Philippe Varin, Chair of the ICC.
France, a founding member, affirmed its support through Agnès Pannier-Runacher, Minister of Ecological Transition: “We are looking forward to working in partnership with other governments to unlock the full potential of carbon markets.”
Peru’s endorsement underscores support from the Global South.
“We need to facilitate greater financial flows towards mitigation activities and sustainable development,” said Racquel Soto, Vice Minister of Natural Resources, Peru.
Hosted by VCMI
The Coalition is supported by a secretariat hosted by the Voluntary Carbon Markets Integrity Initiative (VCMI), which will provide technical and logistical support. VCMI’s existing guidance on carbon credit use will serve as a foundation for the Coalition’s upcoming principles.
Ana Toni, CEO of COP30, concluded: “Political leadership is critical to building confidence and ambition, and we welcome this signal of cooperation.”
Related Article: Building Carbon Markets or a Climate Wild West
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