Carbon pricing now covers 29% of global emissions, revenues top $107b

Adoption grew across major economies as coverage approached one-third of global emissions.

Carbon pricing mechanisms now cover about 29% of global greenhouse gas emissions, with coverage rising to roughly one-third if additional systems under development in major emerging economies are implemented.

The World Bank Group’s State and Trends of Carbon Pricing 2026 report revealed that 87 carbon pricing policies are in place globally, up by seven from the previous year.

Carbon pricing revenues have increased to over $107b in 2025 from below $30b in 2016, reflecting a rise in the use of carbon pricing instruments across jurisdictions.

The average carbon price stands at nearly $21 per tonne of carbon dioxide equivalent. Prices have risen by 7% since the previous year’s report and have doubled over the past decade.

All large middle-income economies have now either implemented or are planning direct carbon pricing instruments, with the report highlighting recent developments in India and Vietnam.

Carbon credit issuance also rose 8% between 2024 and 2025, it noted.

Whilst credit prices declined slightly over 2025, certain project types retained higher valuations, including credits eligible for international aviation use and forest conservation and reforestation projects.

Paschal Donohoe, Managing Director and Chief Knowledge Officer at World Bank Group, said carbon pricing and carbon markets can play an important role in allowing countries to determine their own energy mix, adding that it can support countries in mobilising finance and shaping energy systems.