Carbon pricing revenues have surpassed $100 billion in 2024, as reported by the World Bank. More than half of this revenue has been allocated to environmental, infrastructure, and development projects. The report titled "State and Trends of Carbon Pricing 2025" highlights that there are now 80 carbon pricing instruments worldwide, marking an increase of five from the previous year.
The report reveals that all major middle-income economies have either implemented or are considering direct carbon pricing. Emissions trading systems (ETSs) account for most new and planned instruments. Currently, around 28% of global greenhouse gas emissions are covered by a carbon price in economies representing nearly two-thirds of global economic output. This includes about half of emissions from the power and industrial sectors.
“Carbon pricing remains a powerful tool for advancing multiple policy goals,” stated Axel van Trotsenburg, World Bank Senior Managing Director. “It helps countries cut emissions, raise domestic revenues in tight fiscal environments, and stimulate green growth and job creation. Carbon credit markets can also help mobilize private capital and channel funds to development priorities.”
In carbon crediting markets, demand from compliance markets has almost tripled compared to last year, while growth from voluntary buyers has been minimal. Credit prices vary across types, with nature-based removal credits commanding a premium.
The World Bank has been publishing the State and Trends report since 2003. While annual changes in carbon prices have been gradual, significant shifts have occurred over the past decade: average prices have nearly doubled, coverage of emissions has increased from 12% to 28%, and revenue has tripled.
For further information or broadcast requests, contacts at the World Bank include Hannah McDonald-Moniz at (202) 458-2896 or Kristyn Schrader-King at (202) 560-0153.