Global Carbon Pricing Mobilizes Over $100 Billion dollars

The World Bank has released the 2025 edition of its “State and Trends of Carbon Pricing” report, which provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including international, national and subnational initiatives. It also investigates trends surrounding the development and implementation of carbon pricing instruments. Specifically, it includes the use of carbon taxes, emissions trading systems (ETS) and crediting mechanisms.

The report estimated that carbon pricing revenues exceeded 100 billion dollars in 2024, and covering around 28% of global greenhouse gas emission. There are now 80 carbon pricing instruments in operation worldwide, a net increase of five over the past year.

During the past decade (2015-2024), average carbon prices have nearly doubled, coverage of emissions has grown from 12% to 28%, and carbon pricing revenue has tripled.

Regarding Latin America region, the authors found that while direct carbon pricing instruments are an important part of the total carbon price, their contribution remains relatively low compared to fossil fuel taxes (and subsidies), particularly in the transport sector. Diesel and gasoline typically face a high total carbon price while natural gas and liquefied petroleum gas (LPG) are largely untaxed or even subsidized.