Revenues from global carbon pricing instruments exceeded $100 billion in 2024, according to the World Bank’s State and Trends of Carbon Pricing 2025 report. Over half of these funds were channelled into environmental protection, infrastructure, and development programmes—a modest increase compared to previous years.
The report identifies 80 operational carbon pricing mechanisms worldwide, marking a net increase of five instruments over the past year. Most of the new and planned initiatives take the form of emissions trading systems (ETSs), reflecting a growing trend among large middle-income economies, all of which have either implemented or are actively considering carbon pricing frameworks.
As countries expand carbon taxes and ETSs, approximately 28% of global greenhouse gas emissions are now subject to a carbon price. These jurisdictions account for nearly two-thirds of global economic output. In the power and industrial sectors, around half of emissions are covered, although agricultural emissions remain largely unpriced.
“Carbon pricing remains a powerful tool for advancing multiple policy goals,” said Axel van Trotsenburg, Senior Managing Director at the World Bank. “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 mobilise private capital and channel funds to development priorities.”
In carbon crediting markets, demand from compliance buyers nearly tripled over the past year, while growth in the voluntary market remained stagnant. Credit prices continued to vary by type, 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 pricing have been gradual, the past decade has seen marked progress: average prices have nearly doubled, emissions coverage has increased from 12% to 28%, and revenues have tripled.
