Ecobiz.asia — Direct carbon pricing mechanisms now cover nearly one-third of global greenhouse gas emissions, while revenues generated from carbon pricing have surpassed US$107 billion globally, according to a new report released by the World Bank Group.
The findings were published in the State and Trends of Carbon Pricing 2026 report released in Washington, D.C. on May 19, 2026.
The report shows that carbon pricing revenues have more than tripled over the past decade, rising from below US$30 billion in 2016 to more than US$107 billion in 2025.
Globally, there are now 87 carbon pricing policies in operation, an increase of seven compared with last year.
According to the report, all major middle-income economies have either implemented or are preparing direct carbon pricing instruments, with major developments recorded in India and Vietnam over the past year.
The report also noted that direct carbon prices increased by 7% compared with last year and have doubled over the past decade. The average carbon price globally now stands at nearly US$21 per ton of CO2 equivalent.
Currently, more than 29% of global greenhouse gas emissions are covered by direct carbon pricing mechanisms. The figure could rise to around one-third if several emerging economies proceed with carbon pricing instruments currently under development.
Paschal Donohoe, Managing Director and Chief Knowledge Officer of the World Bank Group, said carbon pricing and carbon markets can help countries determine their own energy transition pathways.
“Carbon pricing and carbon markets can play an important role in allowing countries to determine their own energy mix,” Donohoe said.
“When designed well, they can help drive efficiency and innovation while mobilizing resources for development priorities,” he added.
The report also highlighted developments in the carbon crediting market, where global carbon credit issuances increased by 8% between 2024 and 2025.
Although carbon credit prices declined slightly during 2025, certain project categories continued to command premium prices, particularly projects eligible for use by international airlines and high-rated forest conservation and reforestation initiatives. ***
