WASHINGTON / Content Syndication Services / — Carbon pricing generated more than $107 billion for public budgets in 2025, extending a decade of growth in government revenue from carbon taxes and emissions trading systems, the World Bank said in its State and Trends of Carbon Pricing 2026 report. The total was more than triple the amount raised in 2016, when carbon pricing brought in less than $30 billion, reflecting wider adoption of direct pricing policies and higher average prices across existing systems.
Direct carbon pricing now covers just over 29% of global greenhouse gas emissions, according to the report. That share could rise to around one-third if carbon pricing instruments currently under development are implemented in several major emerging economies. The report counted 87 carbon pricing policies worldwide, seven more than in the previous edition, including carbon taxes and emissions trading systems applied at national and subnational levels.
The findings show that carbon pricing has become a larger fiscal instrument for governments while remaining uneven across sectors and jurisdictions. Direct carbon prices increased 7% from the prior edition and have doubled over the past decade, with the average price now nearly $21 per metric ton of carbon dioxide equivalent. The World Bank said all large middle-income economies have either implemented or are planning direct carbon pricing instruments.
Global coverage expands
Carbon pricing policies place a cost on greenhouse gas emissions through taxes, trading systems, or related mechanisms designed to attach a financial value to emissions. Revenues from these measures flow into public budgets and can be used according to domestic fiscal rules. The 2026 report said the increase in revenue since 2016 has occurred alongside broader policy coverage and more diverse approaches to instrument design.
The report also highlighted continued activity in carbon crediting markets, where overall credit issuances rose 8% between 2024 and 2025. Carbon credit prices declined slightly across 2025, although some project types retained price premiums, including credits eligible for use by international airlines and highly rated forest conservation and reforestation projects. The report described a broader carbon market ecosystem involving generation, trading, evaluation, and retirement of credits.
Middle-income economies advance
India and Vietnam were among the economies identified in connection with recent carbon pricing developments. The report said major emerging economies now account for a growing share of planned or implemented direct pricing instruments, adding to existing systems in advanced economies and subnational markets. It also noted that policy designs differ by jurisdiction, with governments using a range of tax and market-based structures.
The 2026 edition follows the 2025 report, which found that carbon pricing mobilized more than $100 billion for public budgets in 2024 and covered around 28% of global emissions. The latest figures show increases in revenue, policy count, emissions coverage, and average price levels. The report places the 2025 revenue figure within a longer trend in which carbon pricing has expanded from a smaller set of policies into a wider group of fiscal and climate instruments.