Coalition to Grow Carbon Markets to publish policy playbook on carbon credit demand

The Coalition to Grow Carbon Markets said it will publish a policy playbook at COP31 to help governments boost demand for high-integrity carbon credits and give businesses clearer rules. Backed by 11 governments, the coalition is also working with the City of London Corporation and other partners to strengthen market infrastructure as carbon markets mature.

Why it matters: - The Coalition to Grow Carbon Markets wants to make carbon credit demand more predictable for companies, investors and governments. - Clearer policy could speed corporate decarbonisation while keeping competitiveness in view. - Stronger demand for high-integrity credits could unlock more private finance for climate and sustainable development projects. - Carbon credit markets are increasingly seen as a tool for meeting national and corporate climate targets.

What happened: - The Coalition said at London Climate Action Week that it will publish a policy playbook of the most impactful policy options to drive demand for high-integrity carbon credits. - The playbook will be released at the UN’s COP31 climate talks. - The government-led coalition launched last year and now has 11 government members. - Coalition members include Canada, France, Indonesia, Kenya, Panama, Peru, Singapore, Switzerland, New Zealand, Zambia and the UK. - Kenya, Singapore and the UK co-chair the coalition.

The details: - The playbook will lay out ways policymakers can act on the coalition’s Shared Principles, which were released last year. - The Shared Principles are meant to align countries on the role of carbon credits in corporate decarbonisation plans. - The playbook is intended to guide national efforts by coalition members. - The playbook is also meant to give investors, buyers and other stakeholders more direction on purchasing high-integrity carbon credits. - Any country looking to stimulate carbon credit market activity can use the playbook as guidance. - Rachel Kyte, UK Special Representative for Climate and co-chair of the coalition, said the playbook will draw on member-country experience, business network intelligence and international partner expertise. - Kyte said the effort is meant to move businesses from caution to confidence on carbon credit investment. - Kyte said the playbook could help unlock private sector finance for climate and sustainable development projects. - Mary Schapiro, vice chair of the Glasgow Financial Alliance for Net Zero, said financial institutions and companies have struggled to engage at scale without clearer government policy signals. - Schapiro said the playbook is a key step toward giving the private sector the confidence to build products, platforms and long-term purchasing structures. - The City of London Corporation said expanded carbon markets would support UK job growth. - The City of London Corporation cited analysis showing services that support carbon credit markets already contribute £1.2 billion to the UK economy each year. - New Zealand has backed trusted nature and carbon credit markets by recognising and endorsing high-quality credit schemes. - New Zealand has also clarified best practice for market participants, in line with the coalition’s Shared Principles. - Canada is taking part in a coordinated initiative with government, corporate and financial institutions to advance demand for Canadian carbon removals credits. - Canada is promoting a recommended minimum set of project eligibility guidelines aligned with the Shared Principles. - Hon. Julie Dabrusin, Canada’s minister of the environment, climate change and nature, said Canada supports internationally aligned efforts to strengthen demand for high-integrity carbon credits. - Dabrusin said greater consistency and confidence across markets can unlock private investment, accelerate emissions reductions and carbon removal, and support global climate goals. - Dabrusin said Canada will draw on international best practices, including those in the forthcoming policy playbook. - MSCI Carbon Markets found that the value of offtake agreements in 2025 nearly tripled year over year to USD$12.3 billion. - The MSCI Carbon Markets data suggests buyers are securing quality credits now in anticipation of higher prices and tighter supply later. - Egypt said it supports the coalition’s work to drive demand for high-integrity carbon credits. - H.E. Dr Mohamed Farid Saleh, Egypt’s minister of investment and foreign trade, said clear and stable government signals are needed to give businesses and investors confidence. - Saleh said Egypt sees value in working with like-minded governments to build an enabling policy environment for the market.

Between the lines: - The coalition is trying to move carbon credits from a niche sustainability tool toward a more standardized market with clearer rules. - The focus on policy consistency suggests governments see demand growth as constrained less by supply than by uncertainty about how credits fit into corporate climate strategies. - The reference to stronger offtake activity signals that some buyers may already be positioning for a tighter market. - The partnership with the City of London Corporation shows an effort to borrow infrastructure and governance lessons from established capital markets. - London’s role matters because financial-market credibility can help carbon markets scale beyond voluntary, fragmented transactions.

What’s next: - The coalition will use the playbook to support government implementation of policies that can unlock demand. - Members are expected to adapt the playbook to national needs while keeping approaches consistent. - The coalition will work with partners including the City of London Corporation and its UK Carbon Market Forum to strengthen the legal and financial foundations of carbon credit markets. - The coalition also plans to apply lessons from proven capital markets to carbon market infrastructure. - The City of London Corporation partnership aims to build a network of financial market actors from the public and private sectors. - That network is meant to inform more consistent and transparent market infrastructure. - The coalition says its work will help capital flow more efficiently as policy accelerates demand.

The bottom line: - The coalition is betting that clearer government policy, better market infrastructure and international alignment can turn carbon credits into a larger, more reliable channel for climate finance.