Global carbon pricing revenues top a record $100 billion

illuminem summarizes for you the essential news of the day. Read the full piece on The World Bank page and The Reuters or enjoy below:

🗞️ Driving the news: In 2023, global carbon pricing revenues reached a record $104 billion, as detailed in the World Bank's "State and Trends of Carbon Pricing 2024" report
• There are now 75 carbon pricing instruments globally, with over half the revenue funding climate and nature-related programs

🔭 The context: Carbon pricing instruments, including taxes and Emission Trading Systems (ETS), have expanded significantly, covering 24% of global emissions compared to just 7% two decades ago
• Countries like Brazil, India, and Chile are leading in implementation, and new sectors like aviation and shipping are increasingly included

🌍 Why it matters for the planet: Carbon pricing is crucial for reducing emissions and funding climate initiatives
• The EU’s Emissions Trading System is the largest contributor to global carbon revenue, but recent price drops suggest potential revenue decreases in 2024
• Despite record revenues, coverage and pricing levels are still insufficient to meet the Paris Agreement targets, highlighting the need for increased political commitment

⏭️ What's next: The EU's Carbon Border Adjustment Mechanism is pushing more sectors towards carbon pricing
• Greater efforts are needed to close the gap between climate commitments and policy implementation

💬 One quote: “Carbon pricing can be one of the most powerful tools to help countries reduce emissions,” said Axel van Trotsenburg, World Bank Senior Managing Director

📈 One stat: Less than 1% of global greenhouse emissions are covered by a direct carbon price at or above the recommended levels to limit temperature rise to well below 2ºC

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