Emissions trading schemes generate majority of this revenue, over half of which funds climate and nature programs
Key Points
- In 2023, carbon pricing revenues hit a record $104 billion, according to the World Bank’s “State and Trends of Carbon Pricing 2024” report
- There are now 75 carbon taxes and emissions trading schemes globally
- Over half of the revenue funds climate and nature-related programs
- Axel van Trotsenburg of the World Bank emphasized carbon pricing’s role in reducing emissions.
- The World Bank has tracked carbon markets for nearly two decades; the latest report is its eleventh.
- Coverage of emissions by carbon taxes and Emission Trading Systems (ETS) increased from 7% to 24% since the first report.
- Large middle-income countries like Brazil, India, Chile, Colombia, and Türkiye are advancing in carbon pricing.
- Carbon pricing is expanding into new sectors such as aviation, shipping, and waste.
- The EU’s Carbon Border Adjustment Mechanism is prompting consideration of carbon pricing in various industrial sectors.
- Governments are increasingly using carbon crediting frameworks for voluntary and international compliance markets.
- Despite growth, global carbon price coverage and levels are insufficient to meet Paris Agreement goals.
- Less than 1% of global emissions are covered by a carbon price adequate to limit temperature rise below 2ºC.
- Achieving climate goals requires stronger political commitment to bridge the gap between climate commitments and policies.
The World Bank
With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries.
Download the State and Trends of Carbon Pricing 2024 Report
