BRUSSELS - Leaders of the European Union (EU) on Thursday voiced their ambition to lead the global climate action especially in regards to the establishment of a well-functioning carbon trading system.

In his speech at the world's leaders' summit on climate, European Council President Charles Michel stressed the need for a global approach to carbon pricing and urged all developed countries to scale up their contributions to climate finance.

"A global approach to carbon pricing is paramount to promoting green investment. If we want to be at peace with nature, we need to chase carbon from our business model," he said.

The EU has pledged to become climate neutral by 2050, a goal to be written into law by summer. The bloc is also working to achieve a target of 55 percent emissions reduction by 2030.

"We will make emission trading work -- not only for energy generation and industry -- but also for transport and for buildings. Carbon must have its price -- because nature cannot pay the price any longer," said Ursula von der Leyen, chief of the European Commission, at the summit.

The Earth Day summit, hosted by US President Joe Biden, was attended by leaders of some 40 major countries including Britain, France, Germany, Canada, Japan, Russia and China.