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Global carbon pricing systems now cover nearly one-third of worldwide greenhouse gas emissions, according to a new report released by the World Bank Group. The report shows a major rise in government-backed climate pricing policies as countries seek new ways to manage emissions and fund economic development.

The report, State and Trends of Carbon Pricing 2026, said carbon pricing revenues have grown sharply over the past decade. Public revenues from carbon taxes and emissions trading systems increased from less than $30 billion in 2016 to more than $107 billion in 2025.

Carbon Pricing Policies Expand Across Emerging Economies

The report found that there are now 87 active carbon pricing instruments worldwide, seven more than last year. Large middle-income economies are increasingly adopting direct carbon pricing measures or preparing new systems.

Recent developments were highlighted in India and Viet Nam, where governments are advancing plans linked to emissions pricing and climate-related financial systems.

According to the report, direct carbon prices increased by 7% compared with last year. Average prices have doubled over the last decade and now stand at nearly $21 per ton of carbon dioxide equivalent emissions.

Nearly One-Third Of Global Emissions Now Covered

The findings show that direct carbon pricing now covers more than 29% of global greenhouse gas emissions. Analysts said this figure could rise further if planned systems in additional emerging economies become operational.

Paschal Donohoe said carbon pricing and carbon markets may help countries develop energy strategies while supporting innovation and public investment.

The report also noted growth in carbon crediting markets. Carbon credit issuances increased by 8% between 2024 and 2025. However, average carbon credit prices declined slightly during the same period.

Forest conservation, reforestation projects, and airline-linked credits continued to attract higher prices in global markets due to stronger demand and environmental certification standards.