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GCPP Climate Coalitions Working Group Interim Report - Building a Climate Coalition: Aligning Carbon Pricing, Trade, and Development

The interim report of the Global Climate Policy Project Working Group on Climate Coalitions proposes the formation of a climate coalition: a group of countries coordinating on carbon pricing and border adjustments to reduce emissions, align trade and climate goals, and generate fiscal revenue. As global consensus moves slowly and emissions remain high, a smaller group of willing countries can lead with practical, fair, and transparent policies. The report outlines key principles for an effective coalition—efficiency, fairness, integrity, credibility, pragmatism, and self-reinforcement—and presents estimates showing that a coalition focused initially on four heavy industries could cut emissions up to seven times more than the status quo and raise nearly $200 billion in revenue for coalition member governments. It explores design options, including uniform and graduated carbon pricing, and highlights incentives to support participation by low- and middle-income countries through climate finance, technology transfer, and capacity-building. Released alongside the 4th International Conference on Financing for Development, this interim report previews the release of a more detailed roadmap for climate cooperation ahead of COP30.
Jun 30, 2025