Over one quarter of global greenhouse gas emissions are covered by carbon pricing
WASHINGTON, June 10, 2025—Carbon pricing revenues exceeded $100 billion in 2024, according to a new World Bank report released today. Over half of this revenue generated for public budgets was earmarked for environment, infrastructure, and development projects, representing a slight increase from previous years.
The report—State and Trends of Carbon Pricing 2025—notes that there are now 80 carbon pricing instruments in operation worldwide, a net increase of five over the past year. The report shows that all large middle-income economies have now either implemented or are considering direct carbon pricing, with emissions trading systems (ETSs) accounting for most of the new and planned instruments.
With more countries implementing or expanding carbon taxes and ETSs, around 28% of global greenhouse gas emissions are now covered by a carbon price in economies representing nearly two-thirds of global economic output. This includes around half of global emissions from the power and industrial sectors. Coverage in other sectors is lower, with agricultural emissions not yet priced.
“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.”
In carbon crediting markets, demand from compliance markets almost tripled compared to last year, while growth from voluntary buyers has been negligible. Credit prices continue to vary across credit types, with nature-based removal credits attracting a premium relative to other types of projects.
The World Bank has published the State and Trends report since 2003. While annual changes in carbon prices have been incremental, there have been significant changes in the past decade--average prices have nearly doubled, coverage of emissions has grown from 12% to 28%, and revenue has tripled.
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