- BRICS countries are debating between using Article 6 of the Paris Agreement or creating an independent carbon market partnership based on mutual recognition.
- By COP30, most BRICS nations had voluntary carbon markets; some prepared regulatory frameworks for compliance markets.
- Carbon credit systems differ widely within BRICS, especially regarding acceptance of foreign methodologies and registries.
- Credit prices vary significantly—from about $14 per credit in Beijing to under $3 in Indonesia—posing challenges to market integration.
- Brazil’s Open Coalition on carbon market integration aims to harmonize standards, reflecting a key development in BRICS climate cooperation.
The BRICS carbon markets face a pivotal choice between adopting the framework under Article 6 of the Paris Agreement or developing a separate partnership based on mutual recognition of carbon credits. This issue has emerged prominently since the BRICS carbon market partnership launch at the 2024 summit in Kazan, positioning these large emerging economies as influential players in global climate efforts.
The Kazan declaration outlined the partnership as a platform to explore possible cooperation on carbon markets under Article 6. This topic continued at the 17th BRICS summit in Rio de Janeiro in 2025, emphasizing cooperative approaches within the Paris Agreement’s framework. By the start of COP30, eight of 11 BRICS countries had operational voluntary carbon markets, while two were finalizing the establishment of regulatory markets for carbon credits.
Differences exist among the BRICS markets regarding foreign project acceptance and registry openness. Some, like South Africa and Brazil, are creating standards to convert credits from major private registries such as Verra or Gold Standard into national credits. In contrast, China strictly excludes foreign projects and international registries from its system. As of August 2025, Brazil, China, India, and Indonesia accounted for over one-third of global carbon credit projects and about 36% of traded credits.
Prices for carbon credits vary widely, with Beijing’s market trading credits at roughly $14 each, while prices in Indonesia drop below $3. Bridging such price gaps and achieving mutual registry recognition remain significant hurdles for a cohesive BRICS carbon market. Russian Economic Development Minister Maxim Reshetnikov highlighted the partnership’s goal to address climate change without harming economic well-being and rejected unilateral green trade measures, aligning with calls from the BRICS climate agenda forum against unilaterally imposed green protectionism.
COP29 and the supervisory body of Article 6.4 offer an alternative route through established UN frameworks. This approach could allow BRICS countries to set minimum rules for engagement and form bilateral or multilateral agreements under Article 6.2 or 6.4, easing technical challenges present in mutual recognition systems.
Brazil initiated the Open Coalition at COP30 to harmonize carbon market standards, reflecting a strategic point for BRICS countries to decide between deeper interoperability efforts or fully utilizing UN frameworks. Continued collaboration from Kazan to Rio emphasizes the long-term commitment of BRICS nations, with outcomes likely to influence international carbon markets significantly.
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