Carbon pricing revenues exceed $100bn in 2024

The World Bank’s State and Trends of Carbon Pricing 2025 report shows global carbon pricing revenues surpassed US$100 billion in 2024, with over 50 per cent allocated to environmental, infrastructure, and development projects. This marks a threefold increase in revenue over the past decade and underscores carbon pricing’s fiscal and climate relevance.

As of 2025, 80 carbon pricing instruments are in effect globally—a net increase of five in the last year. All large middle-income economies are now either implementing or evaluating direct carbon pricing mechanisms. Most of the newly added instruments are emissions trading systems (ETSs), reflecting a growing preference for market-based approaches over flat carbon taxes.

Currently, 28 per cent of global greenhouse gas emissions are priced in jurisdictions that represent nearly two-thirds of the global GDP. This includes close to half of emissions from the power and industrial sectors. However, agriculture and some other sectors remain largely outside pricing schemes.

Demand for compliance carbon credit markets has nearly tripled year-on-year, while growth in voluntary carbon markets has been limited. Prices remain higher for nature-based removal credits due to their perceived effectiveness in long-term mitigation.

World Bank Senior Managing Director Axel van Trotsenburg stated that carbon pricing helps cut emissions, raise public revenues in tight fiscal environments, and stimulate green growth. He also noted the potential of credit markets to attract private capital to development priorities.

Since 2013, emissions coverage has expanded from 12 per cent to 28 per cent. Average prices have nearly doubled. The World Bank’s data affirms carbon pricing’s growing role in shaping global climate and economic strategies.