Carbon pricing revenues reached a record $104 billion in 2024, marking a significant milestone in global climate policy, according to the World Bank’s State and Trends of Carbon Pricing 2024 report. Over half of the revenue was allocated to environmental, infrastructure, and development projects, reinforcing a growing commitment to climate-aligned public spending.
Expansion of Carbon Pricing Instruments
There are now 75 carbon pricing instruments in operation worldwide, reflecting a net increase of five from the previous year. Emissions trading systems (ETSs) continue to drive expansion, particularly in large middle-income economies such as Brazil, India, Chile, Colombia, and Türkiye.
Axel van Trotsenburg, World Bank Senior Managing Director, emphasized the role of carbon pricing in advancing multiple policy goals:
“Carbon pricing can be one of the most powerful tools to help countries reduce emissions. That’s why it is good to see these instruments expand to new sectors, become more adaptable, and complement other measures.”
Carbon Credit Market Trends
Demand for compliance market carbon credits nearly tripled, signaling strong regulatory momentum. However, voluntary market activity remained flat, with nature-based removal credits continuing to command a premium over other project types.
Decade of Rapid Scaling
Since the World Bank began tracking carbon pricing in 2003, the sector has experienced significant growth:
- Coverage expanded from 12% to 28% of global emissions.
- Average carbon prices nearly doubled.
- Revenue tripled, reinforcing carbon pricing as a strategic lever for fiscal and environmental reform.
Despite record revenues, the report highlights that global carbon price coverage remains too low to meet Paris Agreement goals, with less than 1% of emissions priced at recommended levels.
For more details, visit the World Bank’s official report here.
