Direct Carbon Pricing Covers Nearly One Third of Global Emissions

Carbon pricing raises over $107 billion in government revenue

WASHINGTON, May 19, 2026—Carbon pricing revenues have tripled over the past decade—rising from below $30 billion in 2016 to mobilizing more than $107 billion for public budgets in 2025, according to a World Bank Group report released today.

The annual report, State and Trends of Carbon Pricing 2026, finds that there are now 87 carbon pricing policies globally, increasing by seven since last year. The report shows that all large middle-income economies have now either implemented or are planning direct carbon pricing instruments, with the most significant developments in the past year in India and Viet Nam.  The report also shows that direct carbon prices have grown 7% since last year’s edition and have doubled over the last decade. The average carbon price is now nearly $21/tCO2e.

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Just over 29% of global greenhouse gas emissions worldwide are now covered by direct carbon pricing. This would increase to around one-third if instruments currently under development are implemented in several more major emerging economies.

“Carbon pricing and carbon markets can play an important role in allowing countries to determine their own energy mix,” said Paschal Donohoe, World Bank Group Managing Director and Chief Knowledge Officer. “When designed well, they can help to drive efficiency and innovation, while mobilizing resources for development priorities. For more than 20 years, this report has helped policymakers and the private sector better understand the evolution of these markets and the opportunity they present.”

In carbon crediting markets, overall carbon credit issuances rose 8% from 2024 to 2025. Carbon credit prices declined slightly across 2025, but certain types of projects continued to have a price premium, including those eligible for use by international airlines, or highly rated forest conservation and reforestation projects.   

The World Bank Group is committed to supporting countries in reaching their own development goals to enable jobs and sustainable growth. One area of support is growing access to finance made available through carbon markets. To accomplish this, the World Bank Group Climate Department complements our core lending and advisory services with key products supporting clients along the value chain of climate smart solutions.