Jun 13, 2025
In 2024, revenues from global carbon pricing surpass $100 billion for public budgets.
A recent World Bank report indicates that carbon pricing revenues exceeded $100 billion in 2024, significantly benefiting public budgets.
More than half of these revenues were directed towards environmental projects, infrastructure, and development, demonstrating a strong commitment to sustainable growth.
The ‘State and Trends of Carbon Pricing 2025’ report shows that there are now 80 carbon pricing instruments worldwide, with a net increase of five in the last year.
This growth suggests that all major middle-income countries are either implementing or considering direct carbon pricing methods.
Emissions trading systems (ETSs) are the most common choice for new and planned initiatives.
As more countries implement or improve carbon taxes and ETSs, around 28% of global greenhouse gas emissions are now subject to carbon pricing in economies accounting for nearly two-thirds of global economic output.
This includes about half of emissions from the power and industrial sectors, while coverage in other areas, like agriculture, remains low with many emissions still unpriced.
World Bank senior managing director Axel van Trotsenburg stated that "carbon pricing is a powerful tool for achieving various policy objectives."
"It allows countries to reduce emissions, generate domestic revenue in tight fiscal situations, and promote green growth and job creation. Carbon credit markets can also attract private capital and direct funds to development needs."
The report also highlights a notable increase in demand for carbon credits from compliance markets, which has nearly tripled compared to last year, while demand from voluntary buyers has seen little growth.
Carbon credit prices differ by credit type, with nature-based removal credits fetching higher prices.
The World Bank has been releasing the ‘State and Trends’ report since 2003.
Over the last decade, the carbon pricing landscape has changed significantly, with average prices nearly doubling, emissions coverage increasing from 12% to 28%, and revenues tripling.
More than half of these revenues were directed towards environmental projects, infrastructure, and development, demonstrating a strong commitment to sustainable growth.
The ‘State and Trends of Carbon Pricing 2025’ report shows that there are now 80 carbon pricing instruments worldwide, with a net increase of five in the last year.
This growth suggests that all major middle-income countries are either implementing or considering direct carbon pricing methods.
Emissions trading systems (ETSs) are the most common choice for new and planned initiatives.
As more countries implement or improve carbon taxes and ETSs, around 28% of global greenhouse gas emissions are now subject to carbon pricing in economies accounting for nearly two-thirds of global economic output.
This includes about half of emissions from the power and industrial sectors, while coverage in other areas, like agriculture, remains low with many emissions still unpriced.
World Bank senior managing director Axel van Trotsenburg stated that "carbon pricing is a powerful tool for achieving various policy objectives."
"It allows countries to reduce emissions, generate domestic revenue in tight fiscal situations, and promote green growth and job creation. Carbon credit markets can also attract private capital and direct funds to development needs."
The report also highlights a notable increase in demand for carbon credits from compliance markets, which has nearly tripled compared to last year, while demand from voluntary buyers has seen little growth.
Carbon credit prices differ by credit type, with nature-based removal credits fetching higher prices.
The World Bank has been releasing the ‘State and Trends’ report since 2003.
Over the last decade, the carbon pricing landscape has changed significantly, with average prices nearly doubling, emissions coverage increasing from 12% to 28%, and revenues tripling.