A new report by the World Bank has revealed that global carbon pricing revenues in 2024 surpassed $100bn for the second consecutive year, marking a substantial contribution to public budgets.
According to the State and Trends of Carbon Pricing 2025 report, revenue was down 1.9% from the $104bn recorded in 2023, mainly due to lower prices in large emissions trading systems (ETSs) like those of the EU and the UK.
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However, the share of revenue allocated to environment, infrastructure and development projects saw an increase from previous years to over 50% in 2024.
The number of carbon pricing instruments globally reached 80, an increase of five from 2023. The World Bank found that all large middle-income economies are now either utilising or considering the adoption of direct carbon pricing mechanisms. ETSs are the predominant choice for new and planned instruments.
As of 2024, around 28% of greenhouse gas emissions – compared to 24% in 2023 – are subject to carbon pricing in economies that represent nearly two-thirds of the world’s economic output.
Coverage now includes approximately half of the emissions from the power and industrial sectors. Yet gaps persist across other sectors, with agricultural emissions remaining largely unpriced.
World Bank senior managing director Axel van Trotsenburg said: “Carbon pricing remains a powerful tool for advancing multiple policy goals.
“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.”
The report also notes a significant increase in demand from compliance markets. Retirements nearly tripled in 2024 compared to the previous year.
In contrast, voluntary retirements saw minimal growth, and prices remain inconsistent across credit types. Nature-based removal credits have commanded higher prices than other projects.
Over the past decade, the global carbon pricing landscape has undergone considerable changes. Average prices have almost doubled, coverage of emissions has expanded from 12% to 28%, and revenue has seen a threefold increase.
The World Bank has been publishing the State and Trends report annually since 2003.
