Record Revenue: Carbon pricing generated over $100 billion for public budgets in 2024—more than half allocated to environmental, infrastructure, and development initiatives.
Wider Coverage: 28% of global GHG emissions are now priced, with all major middle-income economies implementing or exploring carbon pricing.
Credit Market Shift: Compliance market demand for carbon credits nearly tripled, while voluntary market growth remained flat.
Carbon pricing mechanisms raised more than $100 billion in 2024, according to the World Bank’s latest State and Trends of Carbon Pricing 2025 report. Over half of the revenue was directed to fund environmental, infrastructure, and development projects, signaling a growing commitment to climate-aligned public spending.
There are now 80 carbon pricing instruments in operation globally—a net increase of five from the previous year. Emissions trading systems (ETSs) continue to dominate the expansion, particularly in large middle-income economies.
“Carbon pricing remains a powerful tool for advancing multiple policy goals,” said 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.”
Currently, about 28% of global greenhouse gas emissions are covered by carbon pricing across economies that account for nearly two-thirds of global GDP. This includes approximately 50% of emissions from the power and industrial sectors, although coverage in sectors like agriculture remains limited.
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On the carbon credit front, demand from compliance markets nearly tripled, signaling regulatory momentum. However, voluntary market activity plateaued. Nature-based removal credits continued to command a premium over other project types.
Since the World Bank began tracking in 2003, global carbon pricing has seen a decade of rapid scaling:
Coverage has expanded from 12% to 28% of emissions.
Average carbon prices have nearly doubled.
Revenue has tripled.
This trajectory reflects both tightening global climate policy and the rising role of carbon pricing as a strategic lever for fiscal and environmental reform.
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