ETSs on the rise, revenues showing a -4% fall in 2024 (State and Trends of Carbon Pricing 2025)

"With 80 ETSs operating worldwide (+5 compared to 2023), Governments are accelerating the implementation of carbon pricing mechanisms as a means to mobilise revenue, incentivise decarbonisation, and achieve broader development goals. Carbon pricing offers a powerful tool. It can mobilize finance and secure development outcomes even during periods of uncertainty,"according to the State and Trends of Carbon Pricing 2025 report by the World Bank published on 11/06/2025.

Despite this growing momentum, the report states that global carbon price levels and coverage still fall short of what is needed to meet climate objectives. At 100 $Bn for 2024, revenues show a 4% fall compared to 2023 (104 $Bn).

The report finds that "the proportion of global greenhouse gas emissions covered by a direct carbon price increased from 24% to 28%," largely driven by China’s expansion of its national emissions trading system (ETS) to include the steel, cement, and aluminium sectors. As a result, "the total coverage of the national ETS has increased to around 8 billion tCO₂e, which represents over half of…