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Carbon pricing revenues exceeded $100 billion in 2024, according to a new World Bank report. 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.

According to Axel van Trotsenburg, World Bank Senior Managing Director, carbon pricing remains a powerful tool for advancing multiple policy goals, including cutting emissions, raising domestic revenues, and stimulating green growth and job creation.