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Home Global Carbon Pricing Revenues Top a Record $100 Billion

Global Carbon Pricing Revenues Top a Record $100 Billion

Carbon pricing

Emissions trading schemes generate majority of this revenue, over half of which funds climate and nature programs.

In 2023, carbon pricing revenues reached a record $104 billion, according to the World Bank’s annual “State and Trends of Carbon Pricing 2024” report released today. There are now 75 carbon pricing instruments in operation worldwide. Over half of the collected revenue was used to fund climate and nature-related programs.

“Carbon pricing can be one of the most powerful tools to help countries reduce emissions. That’s why it is good to see these instruments expand to new sectors, become more adaptable and complement other measures,” said Axel van Trotsenburg, World Bank Senior Managing Director. “This report can help expand the knowledge base for policymakers to understand what is working and why both coverage and pricing need to go up for emissions to go down.” 

The World Bank has been tracking carbon markets for around two decades and this is it’s eleventh annual carbon pricing report. When the first report was released, carbon taxes and Emission Trading Systems (ETS) covered only 7% of the world’s emissions. According to the 2024 report, 24% of global emissions are now covered. 

Report findings show large middle-income countries including Brazil, India, Chile, Colombia, and Türkiye are making strides in carbon pricing implementation. While traditional sectors like power and industry continue to dominate, carbon pricing is increasingly being considered in new sectors such as aviation, shipping and waste. The EU’s Carbon Border Adjustment Mechanism, currently in a transitional phase, is also encouraging governments to consider carbon pricing for sectors such iron and steel, aluminum, cement, fertilizers, and electricity.

Governments are also increasingly using carbon crediting frameworks to attract more finance through voluntary carbon markets and facilitate participation in international compliance markets. 

Despite record revenues and growth, global carbon price coverage and levels remain too low to meet the Paris Agreement goals. Currently, less than 1% of global greenhouse emissions are covered by a direct carbon price at or above the range recommended by the High-level Commission on Carbon Prices to limit temperature rise to well below 2ºC. The report notes that closing the implementation gap between countries’ climate commitments and policies will require much greater political commitment.

To read the report, click here.

The Climate Insight Editor

Emmanuel Ameyaw

Emmanuel Ameyaw is the Founder and Editor of Ghana's foremost Climate-focused news website-The Climate Insight. He has varied experience in journalism across local and international media. He worked as Sub-Editor at TV Africa and MX24 TV. He also served as a Senior Correspondent for Zambian based – MOZO TV. He has published articles on climate change and its impact on communities across major news outlets. He covered major climate conferences notably COP27, COP28, etc.

This extensive work has earned him recognition, including the Global Investigative Journalism Conference Fellowship 2021, World Bank Innovate4Climate Media Fellowship 2021 and CJID West Africa Climate Change Fellowship 2022 and the Clean Air Reporting Fellowship 2023. He is a member of the prestigious Oxford Climate Journalism Network and Earth Journalism Network.

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