• Governments raised a record $107 billion from carbon pricing in 2025, up 2% from 2024.
• Nearly 30% of global greenhouse gas emissions are now covered by a direct carbon price across 87 implemented policies.
• If systems under development in Brazil, Turkey and other markets move ahead, coverage could rise to nearly one-third of global emissions.

Governments raised a record $107 billion in 2025 by charging companies for carbon dioxide emissions, according to the World Bank’s 2026 State and Trends of Carbon Pricing report.

The total was 2% higher than in 2024, showing that carbon pricing continues to expand even as global climate politics remain uneven. More governments are using carbon taxes, emissions trading systems and cap-and-trade frameworks to make polluters pay for the climate costs of their operations.

The World Bank said nearly 30% of global greenhouse gas emissions are now covered by a direct carbon price. That coverage spans 87 implemented policies across national, regional and subnational markets.

For policymakers, the rise matters because carbon pricing is no longer limited to early adopters in Europe and parts of North America. It is becoming a wider fiscal and climate policy tool, with emerging markets now building systems of their own.

New Markets Expand The Carbon Pricing Map

The latest report shows that new emissions trading systems and carbon taxes have been introduced in India, Japan, Mauritania, Serbia and Vietnam.

That expansion points to a broader shift in how governments are approaching decarbonisation. Instead of relying only on subsidies or voluntary commitments, more countries are creating mechanisms that attach a direct cost to emissions.

For companies, this changes the economics of carbon-intensive activity. A higher carbon price can affect production costs, energy choices, capital allocation and supply chain strategy. It can also shape where investors see regulatory risk.

The World Bank said the average carbon price doubled between 2016 and 2026, rising to nearly $21 per metric ton of carbon dioxide equivalent from $10 per ton. The increase was driven largely by higher prices in emissions trading systems.

That price level is still uneven across regions. Some markets remain low, while others have developed stronger price signals. Still, the direction is clear. Carbon is becoming a priced business input in more jurisdictions.

RELATED ARTICLE: Global Carbon Pricing Surpasses $100B, Expands Emissions Coverage to 28%

Brazil And Turkey Could Push Coverage Higher

Further growth may come from policies still under development. The World Bank said that if countries such as Brazil and Turkey implement planned systems, almost one-third of global greenhouse gas emissions could fall under an emissions trading system or carbon tax.

That would be a significant development for global climate governance. Wider coverage could help countries align domestic policy with international climate goals, including emissions targets under the Paris Agreement.

It could also deepen the link between national climate plans and public finance. Carbon pricing raises revenue that governments can use for climate investment, industrial transition, household support or deficit management. However, the way governments use that revenue will matter.

For executives and investors, the key question is no longer whether carbon pricing will expand. It is how quickly it will affect operating markets, suppliers and customers.

Companies with high emissions exposure may face rising compliance costs. Those with credible transition plans may be better placed to manage future regulation. Investors will also need to assess whether carbon pricing assumptions are reflected in valuations, capital expenditure and risk disclosures.

What Business Leaders Should Watch

The 2025 revenue figure shows that carbon pricing is becoming a larger part of the global climate finance system. It is not yet comprehensive, and prices remain too fragmented to create a uniform global signal. However, the policy direction is moving toward wider coverage and stronger market design.

For C-suite leaders, this creates three immediate priorities. First, companies should map current and emerging carbon pricing exposure across markets. Second, they should test whether transition plans remain viable under higher carbon cost scenarios. Third, boards should treat carbon pricing as a governance issue, not only as a sustainability metric.

The record $107 billion raised in 2025 reflects more than a fiscal gain for governments. It shows that carbon pricing is moving deeper into the machinery of economic policy. As more countries adopt taxes and trading systems, the cost of emissions will become harder for companies to treat as external to business strategy.

Read the World Bank’s 2026 State and Trends of Carbon Pricing Report here.

ESG News Editorial Team

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