The World Bank has disclosed that global revenues generated from carbon pricing mechanisms rose above $107 billion in 2025, marking a continuation of a decade-long upward trend in climate-linked fiscal tools.
The figures were published in the World Bank’s “2026 State and Trends of Carbon Pricing” report, which shows that revenues from emissions trading systems (ETSs) and carbon taxes increased by 2% in 2025.
According to the report, carbon pricing revenues have risen sharply from less than $30 billion in 2016 to more than $100 billion annually since 2021, reflecting what the institution describes as accelerating global adoption of carbon pricing frameworks as countries work towards climate commitments under the Paris Agreement.
The report highlights that the expansion of carbon pricing systems is reshaping global climate finance structures, with the World Bank stating:
“Annual revenues from emissions trading systems (ETSs) and carbon taxes increased by 2% in 2025, extending a decade-long growth trend.”
It added that: “The share of global greenhouse gas emissions covered by emissions trading systems has expanded from about 8% in 2016 to more than 24% in 2025.”
However, the report noted that carbon tax coverage has remained relatively stable, accounting for around 4% to 5% of global emissions.
The World Bank also observed that most carbon pricing revenues continue to be generated in advanced economies, where carbon prices are higher and emissions trading frameworks are more developed. It stated:
“Several middle-income economies are yet to fully adopt auction-based emissions trading systems.”
Looking ahead, the institution pointed to emerging developments in Asia, noting that Japan’s newly established GX-ETS is expected to channel future proceeds into national energy transition and decarbonisation projects. It also projected further expansion of carbon pricing systems from 2026, with countries such as India, Japan and Viet Nam expected to scale up national ETS frameworks.
In Africa, Nigeria has intensified efforts to establish a structured carbon market as part of its broader climate and energy transition agenda.
In January 2026, President Bola Ahmed Tinubu approved the operationalisation of Nigeria’s national carbon market framework. The initiative is expected to position the country as one of Africa’s emerging carbon credit hubs.
The Federal Government has projected that Nigeria’s carbon market could generate at least $3 billion annually by 2030 through carbon credit trading and climate-related investments. Earlier, in November 2025, it also unveiled plans to mobilise up to $3 billion yearly in climate finance through the National Carbon Market Framework and Climate Change Fund.
Experts say Nigeria could benefit significantly from the expanding global carbon economy, citing its vast forest reserves, renewable energy potential and growing clean energy sector as key advantages.
They also note that carbon markets are increasingly seen as alternative revenue sources for developing economies, while supporting job creation and technology transfer.
Stakeholders have, however, stressed the need for strong regulatory frameworks, credible emissions monitoring systems and transparency in carbon credit issuance to ensure market integrity.
Climate finance advocates further argue that stronger African participation in global carbon pricing systems could help bridge the continent’s climate financing gap and accelerate progress towards net-zero and adaptation goals.
Boluwatife Enome
