State and Trends of Carbon Pricing 2024, World Bank Report

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adelphi consult

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The State and Trends of Carbon Pricing 2024 Report, a collaborative effort between adelphi and The World Bank, offers an up-to-date overview of current and emerging carbon pricing initiatives worldwide. It highlights trends in the development and implementation of carbon pricing instruments such as carbon taxes, emissions trading systems (ETS), and crediting mechanisms.

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Key findings of the 2024 Report

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There are 75 carbon taxes and emissions trading systems in operation worldwide. Adoption of carbon pricing remains limited but promising, particularly in middle-income countries like Brazil, India, and Türkiye. Progress is also seen at subnational levels and in international aviation and shipping. The EU's CBAM has begun, requiring importers to report emissions.
Despite consistent growth in the past decade, carbon prices continue to fall short of the ambition needed to achieve the Paris Agreement goals.
Carbon pricing revenue hit a record high of over USD 100 billion in 2023. Most of the revenue comes from the EU, with funds directed mainly toward climate and nature-related programs.
Governments are using flexible carbon pricing designs. Multiple instruments are being applied to expand coverage, particularly in the power and industrial sectors and increasingly in maritime transport and waste.
Carbon credit markets show mixed trends. Middle-income countries are integrating crediting frameworks, but credit issuances have declined for the second consecutive year. Prices fell across most project categories, except for carbon removal projects, which have shown resilience.
Market integrity and credibility are of the utmost importance in the realm of carbon pricing. Efforts to establish credit quality benchmarks and the potential role of carbon credits in addressing residual emissions are crucial. Development under Paris Agreement Article 6 is progressing.