According to calculations by the World Bank, this represents three times the amount raised in 2016 (less than $30 billion). The World Bank documents 87 active policies worldwide and notes that coverage could approach one third of global emissions if more emerging economies adopt these instruments.
The annual report titled State and Trends of Carbon Pricing 2026 reveals that there are currently 87 carbon pricing policies in the world, an increase of seven from the previous year. It also shows that all major middle-income economies have implemented or plan to implement direct carbon pricing mechanisms. India and Vietnam are the countries that made the most significant progress in this area in 2025. The publication also notes that direct carbon prices have increased by 7% since last year’s report and have doubled in the last decade. The average carbon price is now nearly US$21/tCO2e.
Just over 29% of global greenhouse gas emissions are now covered by direct carbon pricing mechanisms. This figure would rise to around a third if the instruments currently under development were implemented in more significant emerging economies.
“Carbon pricing and carbon markets can play an important role in allowing countries to determine their own energy mix,” said Paschal Donohoe, Managing Director and Chief Knowledge Officer of the World Bank Group. “When well designed, they can help drive efficiency and innovation while mobilising resources for development priorities. For over 20 years, this report has helped policymakers and the private sector better understand the evolution of these markets and the opportunities they present.”
In carbon credit markets, the total volume of carbon credit emissions increased by 8% between 2024 and 2025. Meanwhile, carbon credit prices slightly decreased during 2025, but some types of projects continued to command a premium, including those that can be used by international airlines or high-rated forestry conservation and reforestation projects.