Publication: State and Trends of Carbon Pricing: International Carbon Markets 2024
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2024-09-09
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2024-09-09
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Well-designed, high integrity carbon markets can play a pivotal role in financing climate action in developing countries. However, several critical bottlenecks impede the growth of these markets. The 2024 State and Trends of International Carbon Markets report evaluates the progress made in addressing these bottlenecks, highlights the urgency of these issues, and proposes recommendations to ensure that carbon markets reach their full potential.
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“World Bank. 2024. State and Trends of Carbon Pricing: International Carbon Markets 2024. © World Bank. http://hdl.handle.net/10986/42094 License: CC BY-NC 3.0 IGO.”
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Publication State and Trends of Carbon Pricing 2024(Washington, DC: World Bank, 2024-05-21)This report provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including international, national, and subnational initiatives. It also investigates trends surrounding the development and implementation of carbon pricing instruments and some of the drivers seen over the past year. Specifically, this report covers carbon taxes, emissions trading systems (ETSs), and crediting mechanisms. Key topics covered in the 2024 report include uptake of ETSs and carbon taxes in low- and middle- income economies, sectoral coverage of ETSs and carbon taxes, and the use of crediting mechanisms as part of the policy mix.Publication State and Trends of Carbon Pricing 2022(Washington, DC: World Bank, 2022-05-24)This report provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including international, national and subnational initiatives. It also investigates trends surrounding the development and implementation of carbon pricing instruments and how they could accelerate the delivery of long-term mitigation goals. Specifically, this includes the use of carbon taxes, emissions trading systems and crediting mechanisms. Key topics covered in the 2022 report include cross-border approaches to carbon pricing, challenges and opportunities from rising energy prices, and new technologies and governance frameworks shaping carbon markets.Publication State and Trends of Carbon Pricing 2021(Washington, DC: World Bank, 2021-05-25)This report provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including international, national and subnational initiatives. It also investigates trends surrounding the development and implementation of carbon pricing instruments and how they could accelerate the delivery of long-term mitigation goals. Specifically, this includes the use of carbon taxes, emissions trading systems and crediting mechanisms. International cooperation on carbon pricing and the status of work surrounding Article 6 of the Paris Agreement is also canvassed.Publication State and Trends of Carbon Pricing 2018(Washington, DC: World Bank, 2018-05-22)The State and Trends of Carbon Pricing series reflects on the growing momentum for carbon pricing worldwide. It targets the wide audience of public and private stakeholders engaged in carbon pricing design and implementation. This report provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including national and subnational initiatives. It also investigates trends surrounding the development of carbon pricing instruments and how they could accelerate to deliver long-term mitigation goals.Publication State and Trends of Carbon Pricing 2016(Washington, DC: World Bank, 2016-10)This report provides an up-to-date overview of existing and emerging carbon pricing instruments around the world, including national and subnational initiatives. Furthermore, it gives an overview of current corporate carbon pricing initiatives. Another key focus of the report is on the importance of aligning carbon pricing with the broader policy landscape. The analysis provides lessons for policymakers on how maximize synergies between climate mitigation and other related policies, while managing potential tensions and tradeoffs. It also provides new modelling analysis to demonstrate the crucial benefits that an international carbon market established under Article 6 of the Paris Agreement could provide in reducing the costs to countries of achieving their emission reduction targets. An international carbon market could thus enable greater ambition in taking steps to reduce greenhouse gas emissions to a level consistent with the 2°C climate stabilization goal.
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Publication State and Trends of Carbon Pricing(Washington, DC: World Bank, 2023-12-08)As developing nations grapple with the largefinancing needs required to achieve our climate goals, the urgency to mobilize sub stantial capital towards communities, nature, and broader developmental efforts is resoundingly clear. In this context, carbon markets, both under the Paris Agreement and the voluntary carbon market (VCM), can channel much-needed finance towards climate action. In all, 120 nations have considered the role of international carbon markets to support mitigation action and achievement of their nationally determined contribution (NDC) targets, and many corporations are seeking high-quality carbon credits to meet their voluntary climate commitments. Done right, carbon markets can help us get the resources we need now, at scale, and accelerate action by providing much needed source of finance. 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Key topics covered in the 2024 report include uptake of ETSs and carbon taxes in low- and middle- income economies, sectoral coverage of ETSs and carbon taxes, and the use of crediting mechanisms as part of the policy mix.Publication Balancing Act(Washington, DC: World Bank, 2024-09-09)This report provides practical insights into the political economy challenges and opportunities for advancing carbon pricing, drawing on the experiences of select countries, including those in the World Bank’s Partnership for Market Implementation (PMI). Such countries often face different socioeconomic, political, and institutional environments than high-income economies. The review combines findings from academic literature in economics and political science, interviews with stakeholders, and an original survey of carbon pricing experts and policymakers in developing countries, to extract meaningful insights into how policymakers navigate political economy challenges to promote carbon pricing in developing countries. The report does not deal with the adoption of the broader set of climate policies that may also support mitigation. The premise of this report is that carbon pricing can be an effective and cost-effective instrument, one that has increasingly attracted government interest as a key part of the climate policy toolkit. The target audience for this report is national and subnational policymakers and other interested stakeholders seeking practical insights on realworld approaches that have worked or failed when advancing carbon pricing. The report does not prescribe best practices or cover every possible circumstance. Instead, by examining current practices at each stage of carbon pricing development, it aims to inform and assist in efforts to implement carbon pricing.Publication Choosing Our Future(Washington, DC: World Bank, 2024-09-04)Education can propel faster and better climate action in two crucial ways. First, education can galvanize behavior change at scale - not just for tomorrow, but also for today. Second, education can unlock skills and innovation to shift economies onto greener trajectories for growth. At the same time, education needs to be protected from climate change. Extreme climate events and temperatures are already eroding hard-won progress on schooling and learning. Climate change is causing school closures, learning losses, and dropouts. These will turn into long-run inter-generational earnings losses putting into jeopardy education’s powerful potential for spurring poverty alleviation and economic growth. Governments can act now to adapt schools for climate change in cost-effective ways. This report outlines new data, evidence, and examples on how countries can harness education to propel climate action. It provides an actionable policy agenda to meet development, education, and climate goals together, recognizing that tackling climate change requires changes to individual beliefs, behaviors, and skills – changes that education is uniquely positioned to catalyze.