Global carbon emissions pricing revenue reached a record $107 billion in 2025, according to the World Bank’s 2026 State and Trends of Carbon Pricing report. The figure was 2% higher than in 2024, showing that governments are increasingly using carbon pricing as both a climate policy tool and a revenue mechanism.

Carbon pricing makes companies pay for the greenhouse gas emissions linked to their operations. This can happen through carbon taxes, emissions trading systems, or cap-and-trade frameworks. The idea is simple: when pollution has a price, businesses have a stronger financial reason to cut emissions, improve efficiency, and invest in cleaner technologies.

Carbon Pricing Coverage Expands Worldwide

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

The growth shows that carbon pricing is no longer limited to early adopters in Europe and North America. New emissions trading systems and carbon taxes have also been introduced in India, Japan, Mauritania, Serbia, and Vietnam, pointing to wider adoption across emerging and developing markets.

New Markets and Rising Carbon Prices

The average carbon price has doubled over the last decade, rising from around $10 per metric ton of CO₂ equivalent in 2016 to nearly $21 per ton in 2026. Much of this increase has come from stronger prices in emissions trading systems.

For companies, this changes the cost of doing business. Carbon-intensive production, energy choices, supply chains, and capital investment decisions may all be affected as more markets attach a direct cost to emissions.

Key developments include:

• India, Japan, Mauritania, Serbia, and Vietnam introduced new carbon pricing policies.
• Brazil and Turkey are developing systems that could expand future coverage.
• 87 policies are already active across different jurisdictions.
• Nearly 30% of global emissions are now priced directly.
• Average carbon prices have doubled since 2016.

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Brazil and Turkey Could Push Coverage Higher

Further growth may come from countries still developing their carbon pricing systems. If planned policies in markets such as Brazil and Turkey move forward, almost one-third of global greenhouse gas emissions could be covered by a carbon tax or emissions trading system.

This would be a major step for global climate governance. Wider coverage can help countries connect domestic climate policies with their Paris Agreement targets while also generating public revenue for climate investment, household support, industrial transition, or public finance needs.

However, the impact depends on how governments design these systems. Stronger carbon prices, transparent reporting, and fair use of revenue will be important to ensure carbon pricing supports real emissions cuts.

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What Businesses Should Watch

The record $107 billion raised in 2025 shows that carbon pricing is becoming a serious part of economic policy. For business leaders, the question is no longer whether carbon pricing will expand, but how quickly it will affect their markets, suppliers, and customers.

Companies should map their exposure to existing and upcoming carbon pricing systems, test business plans under higher carbon cost scenarios, and include carbon pricing in board-level risk discussions. High-emission companies may face rising compliance costs, while firms with credible transition plans may be better prepared.

Overall, global carbon emissions pricing revenue hitting a record high signals a clear shift. Carbon is becoming a priced business input, and companies that treat emissions as a strategic cost will be better positioned for the next phase of climate regulation.

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