The World Bank’s 2025 report, State and Trends of Carbon Pricing, highlights that global carbon pricing mechanisms generated over $100 billion in 2024, with more than half earmarked for environmental, infrastructure, and development projects. Now, 80 carbon pricing instruments are in operation worldwide, covering an estimated 28% of global greenhouse gas emissions, particularly in the power and industrial sectors. The expansion of carbon taxes and emissions trading systems signifies growing global momentum, driven by benefits such as emission reduction, revenue generation, green growth, and job creation. Demand in compliance carbon credit markets nearly tripled last year, demonstrating increased market activity, while voluntary market demand remained modest.

Source: World Bank