Luxembourg has joined the Coalition to Grow Carbon Markets, a government initiative that now brings together 14 countries with the aim of developing voluntary carbon markets. This announcement comes a few months ahead of COP31, which is being held this year in Antalya, Turkey, where climate finance is one of the priorities set out by the presidency. Luxembourg thus joins Canada, France, Switzerland, New Zealand, the United Kingdom, Singapore, Kenya and several other member countries of this coalition, which was launched in 2025 to encourage demand for carbon credits of high environmental integrity.

Government represented by the LSFI

The Luxembourg government will be represented within the Coalition by the Luxembourg Sustainable Finance Initiative (LSFI). This membership comes at a time when Luxembourg is stepping up its efforts to promote climate finance, notably through the Luxembourg International Climate Finance Days held in June. According to the Coalition, the development of markets based on high-integrity carbon credits could mobilise more than $50 billion in additional funding per year for climate action by 2030.

The Minister for the Environment, Climate and Biodiversity, Serge Wilmes (CSV), states: “The common principles developed by the Coalition to Grow Carbon Markets highlight the importance of carbon credits that demonstrate high environmental integrity, deliver benefits for people and nature, are subject to transparent reporting, and are used solely to complement the rapid decarbonisation of businesses. We are delighted that the Luxembourg Sustainable Finance Initiative is joining the Coalition on behalf of the government to support the development of high-integrity carbon markets, which mobilise private finance and contribute to reducing global emissions in line with the Paris Agreement. Together with the LSFI, we look forward to collaborating with the other member governments of this important initiative.”

A highly anticipated guide for COP31

To mark COP31, the Coalition plans to publish a public policy guide for governments. This document will set out various measures to stimulate demand for high-integrity carbon credits and support their use in companies’ decarbonisation strategies. It is based on the common principles published by the Coalition in 2025 to clarify the role of these credits in climate policies.

Luxembourg has joined the Coalition alongside Turkey, the host country for COP31, and Ghana. With these three new members, the initiative now comprises 14 governments. The UK’s Special Representative for Climate Action and Co-Chair of the Coalition, Rachel Kyte, sees these new members as “a strong demonstration of the growing international consensus” in favour of developing high-integrity carbon markets capable of channelling more private finance towards emissions reduction, nature conservation and sustainable development.