Carbon pricing revenues have more than tripled over the past decade, rising from under $30 billion in 2016 to more than $107 billion in 2025, according to the World Bank Group’s latest report.

In its State and Trends of Carbon Pricing 2026 report, the World Bank said the number of carbon pricing policies worldwide increased to 87, up seven from the previous year. The report noted that all major middle-income economies have either introduced or are planning direct carbon pricing mechanisms, with India and Vietnam recording the most notable progress over the past year.

The report also found that direct carbon prices rose 7% year-on-year and have doubled over the last decade, with the average price reaching nearly $21 per tonne of carbon dioxide equivalent.

Around 29% of global greenhouse gas emissions are currently covered by direct carbon pricing, a figure expected to rise further if pending schemes in emerging economies are implemented.

Meanwhile, global carbon credit issuances increased 8% between 2024 and 2025, although prices edged lower during the year.

“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.” -OGN/ TradeArabia News Service