State and Trends of Carbon Pricing 2025

The World Bank’s annual State and Trends of Carbon Pricing report is aimed at providing an up-to-date overview of existing and emerging carbon pricing instruments around the world, including international, national, and subnational initiatives. It focuses on identifying key developments relating to all forms of direct carbon pricing – emissions trading systems, carbon taxes, and carbon crediting mechanisms. This year’s report will be the twelfth (in its current format) – building on many decades of World Bank Group’s work in this space.

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About State and Trends of Carbon Pricing

Carbon pricing is an important tool to mobilize finance and secure development outcomes. Today, about 28% of global greenhouse gas emissions are covered by a direct carbon price, and jurisdictions representing two-thirds of global GDP have adopted carbon taxes or emissions trading systems.

New analysis in the 2025 State and Trends of Carbon Pricing report highlights how governments are leveraging carbon pricing to support fiscal stability, encourage innovation, and attract investment—especially in developing economies. Drawing on compliance instruments (ETSs and carbon taxes) and carbon crediting data, the report offers evidence-based insights into policies and market developments.

Key Messages in 2025

Carbon pricing now covers around 28% of global emissions.
Carbon pricing mobilized over $100 billion for public budgets in 2024.
Over half of power sector emissions are covered by a carbon price, while coverage levels vary across other sectors.
Carbon credit supply continued to outstrip demand, moving the global pool of unretired credits to almost 1 billion tons in 2024.
Increased demand from compliance markets drove growth in carbon credit retirements.
Carbon credit prices softened slightly, with premiums for credits from nature-based carbon removals projects and credits with perceived higher quality