Publication: State and Trends of Carbon Pricing 2024
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2024-05-21
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2024-05-21
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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.
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“World Bank. 2024. State and Trends of Carbon Pricing 2024. © World Bank. http://hdl.handle.net/10986/41544 License: CC BY 3.0 IGO.”
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Publication State and Trends of Carbon Pricing 2014(Washington, DC: World Bank, 2014-05-28)This report follows the evolution of carbon pricing around the world. Last year's report mapped the main carbon pricing initiatives. This year the report presents the status of each of these developing initiatives and explores the emerging trends of carbon pricing. The focus is on the recent highlights from around the world and on key lessons that can be drawn from the growing experience. Despite the difficult ongoing international climate negotiations, there is an increased focus on climate change policy and several economies are planning, implementing or refining domestic mitigation actions. These activities take careful note of past experiences, mirroring successes and dealing with weaknesses. About 40 national and over 20 sub-national jurisdictions are putting a price on carbon. Together these carbon pricing instruments cover almost 6 gigatons of carbon dioxide equivalent (GtCO2e), or about 12 percent of the annual global GHG emissions. Cooperation remains a key feature of success The international market has been struggling for some time. However, the current spate of domestic action has been buoyed by growing cooperation among regional, national and sub-national stakeholders. Piloting and scaling up carbon pricing on an international level and increasing climate finance through market-based mechanisms is an important first step. The next challenge will be to create a product that is greater than the sum of its parts by converting fragmented initiatives into internationally integrated carbon pricing approaches.Publication State and Trends of Carbon Pricing 2025(Washington, DC: World Bank, 2025-06-10)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. Specifically, this includes the use of carbon taxes, emissions trading systems and crediting mechanisms.Publication State and Trends of the Carbon Market 2008(World Bank, Washington, DC, 2008-05)The carbon market is the most visible result of early regulatory efforts to mitigate climate change. Regulation constraining carbon emissions has spawned an emerging carbon market that was valued at US$64 billion (Euro 47 billion) in 2007. Its biggest success so far has been to send market signals for the price of mitigating carbon emissions. This, in turn, has stimulated innovation and carbon abatement worldwide, as motivated individuals, communities, companies and governments have cooperated to reduce emissions. The European Union Emission Trading Scheme (EU ETS) market has been successful in its mission of reducing emissions through internal abatement at home, and of stimulating emission reductions abroad. The European Commission, learning from the experience of Phase I, has strengthened several important design elements for EU ETS Phase II. Clean Development Mechanism (CDM) accounted for the vast majority of project-based transactions (at 87 percent of volumes and 91percent of values) and JI saw transacted volumes doubling and values tripling in 2007 over the previous year. The CDM alone saw primary transactions worth US$7.4 billion (Euro 5.4 billion), with demand coming mainly from private sector entities in the EU, but also from EU governments and Japan.Publication State and Trends of the Carbon Market 2009(World Bank, Washington, DC, 2009-05)Over the past year, the global economy has cooled significantly, a far cry from the boom just a year ago in various countries and across markets. At the same time, the scientific community communicated the heightened urgency of taking action on climate change. Policymakers at national, regional, and international levels have put forward proposals to respond to the climate challenge. The most concrete of these is the adopted European Union (EU) climate and energy package (20 percent below 1990 levels by 2020), which guarantees a level of carbon market continuity beyond 2012. The EU package, along with proposals from the U.S. and Australia, tries to address the key issues of ambition, flexibility, scope, and competitiveness. Taken together, the proposals tabled by the major industrialized countries do not match the aggregate level of annex one ambition called for by the Intergovernmental Panel on Climate Change, or IPCC (25-40 percent reductions below 1990). Setting targets in line with the science will send the right market signal to stimulate greater cooperation with developing countries to scale up mitigation.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.
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