World Bank: Global Carbon Pricing Revenue Surpasses $107 Billion in 2025
World Bank Reports Sharp Rise in Global Carbon Pricing Revenue
Global revenues generated from carbon pricing mechanisms exceeded $107 billion in 2025, according to the World Bank’s latest State and Trends of Carbon Pricing 2026 report, highlighting the growing role of carbon markets and emissions trading systems in global climate policy.
The report showed that carbon pricing revenues have more than tripled over the past decade, rising from less than $30 billion in 2016 to over $107 billion in 2025. The growth reflects increasing adoption of carbon taxes and emissions trading systems (ETSs) by governments seeking to reduce greenhouse gas emissions while mobilising revenue for public investment and climate-related projects.
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Carbon Pricing Coverage Continues to Expand
According to the World Bank, direct carbon pricing mechanisms now cover nearly 30% of global greenhouse gas emissions, up significantly from approximately 8% a decade ago. The institution reported that 87 carbon pricing policies are currently operational worldwide, representing an increase of seven policies compared to the previous year.
The report noted that emissions trading systems continue to drive much of the expansion in carbon pricing coverage globally. ETS frameworks allow governments to cap industrial emissions while enabling companies to trade emissions permits within regulated markets.
Carbon taxes, meanwhile, have maintained relatively stable coverage levels, accounting for approximately 4% to 5% of global emissions.
The World Bank added that direct carbon prices increased by 7% over the past year and have doubled over the last decade, with the average global carbon price now approaching $21 per tonne of carbon dioxide equivalent (tCO2e).
Advanced Economies Continue to Lead Revenue Generation
The report showed that most carbon pricing revenues continue to originate from advanced economies due to higher carbon prices and more established emissions trading frameworks.
More than half of carbon pricing revenues generated globally are now directed toward environmental programmes, infrastructure development, industrial transition initiatives, and clean energy investments.
The World Bank stated that countries are increasingly using carbon pricing as both a climate policy tool and a fiscal mechanism to finance energy transition programmes and broader development priorities.
Several major emerging economies, including India and Viet Nam, have accelerated efforts to implement or expand national carbon pricing systems over the past year.
Nigeria Intensifies Carbon Market Development
Nigeria has also increased efforts to position itself within the global carbon economy.
According to recent policy updates referenced in the report, President Bola Tinubu approved the operationalisation of Nigeria’s national carbon market framework in January 2026 as part of the country’s broader climate transition strategy.
The Federal Government projects that Nigeria’s carbon market could generate at least $3 billion annually by 2030 through carbon credit trading, climate investments, and emissions reduction initiatives.
Industry analysts believe Nigeria could benefit from growing global demand for carbon credits due to its renewable energy potential, forest conservation opportunities, and large agricultural sector capable of supporting nature-based carbon projects.
Carbon Markets Becoming Central to Climate Policy
The World Bank said carbon pricing mechanisms are becoming increasingly central to international climate and economic policy frameworks as governments intensify efforts to meet emissions reduction targets under the Paris Agreement.
The institution also noted that carbon credit issuances increased by 8% between 2024 and 2025, although prices for carbon credits softened slightly during the year due to broader market conditions. However, premium pricing remained strong for high-quality forest conservation and reforestation projects as well as credits linked to international aviation compliance programmes.
Despite the record revenue growth, the report cautioned that global carbon price levels and emissions coverage remain below the thresholds required to achieve long-term climate goals under the Paris Agreement.
Outlook
The continued expansion of carbon pricing systems signals increasing global acceptance of market-based climate policies as governments seek to balance economic growth, emissions reduction, and energy transition goals.
With more emerging economies preparing to launch carbon pricing frameworks from 2026 onward, the World Bank expects global coverage and revenues from carbon markets to continue rising in the coming years.
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