In 2023, global carbon pricing revenues reached a remarkable milestone, surpassing $100 billion for the first time. This achievement was driven by high prices in the European Union (EU) and a temporary shift in some German Emissions Trading System (ETS) revenues from 2022 to 2023.
Currently, there are 75 carbon taxes and emissions trading schemes in operation worldwide. Notably, middle-income countries such as Brazil, India, and Turkey have made significant progress towards implementing carbon pricing mechanisms.
ETS continues to contribute significantly to these revenues. Over half of the collected revenue is directed toward funding climate and nature-related programs.
Despite this achievement, global carbon price coverage remains insufficient to meet the goals of the Paris Agreement. Currently, less than 1% of global greenhouse emissions are covered by a direct carbon price at or above the recommended range to limit temperature rise to well below 2°C.
