WorldBank – State of Carbon Pricing, 2024

The past year has seen limited adoption of carbon pricing globally, with 75 carbon taxes and emissions trading schemes in operation worldwide. Middle-income countries like Brazil, India, and Türkiye have shown progress in implementing carbon pricing. However, there remains an implementation gap between countries' commitments and policies. Carbon pricing instruments cover around 24% of global emissions, with potential to increase to almost 30% with strong political commitment. Despite this, carbon prices are still insufficient to meet the goals of the Paris Agreement. Carbon pricing revenues reached over USD 100 billion in 2023, with the majority being used for climate-related programs. Flexible designs and approaches are emerging in carbon pricing, with governments using multiple instruments to expand coverage. The carbon credit market saw mixed movements, with a growing pool of non-retired credits in the market. Efforts to rebuild integrity and credibility in the market are ongoing, as concerns about credit quality persist. Despite setbacks and delays, development and implementation of Paris Agreement Article 6 continue.