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Key findings of the report
- Carbon Pricing (CP) revenues in 2023 exceeded USD 100 billion for the first time.
- There are 75 global CP instruments in operation, covering around 24% of global greenhouse gas emissions.
- Brazil, India, and Türkiye have made notable progress towards CP implementation.
- China and India are largest host countries in terms of issuances of Carbon Credits.
Carbon pricing (CP) is an instrument that attaches a cost to greenhouse gas emissions, typically through CO2 pricing mechanisms.
Main types of CP
- An emissions trading system (ETS): It is a system where emitters can trade emission units to meet their emission targets.
- Types of ETSs are: Cap-and-trade systems and Baseline-and-credit systems
- Carbon tax: It directly sets a price per unit of greenhouse gas emissions or carbon content.
Benefits of CP
- Place the burden of emissions damage on polluters.
- Spur investment and innovation in clean technology.
- Facilitate Paris Agreement emissions pathways for below 2°C/1.5°C warming.
CP at national level
CP at Global Level
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