Global carbon pricing revenues surge to record high of USD104B last year
Date
5/22/2024 4:10:24 AM
(MENAFN) Global carbon pricing revenues surged to a record high of USD104 billion last year, according to a report released by the World bank on Tuesday, it also highlighted that there are currently 75 carbon pricing instruments in operation worldwide.
Furthermore, it revealed that over half of the collected revenue was allocated towards funding climate and nature-related programs, as outlined in the State and Trends of Carbon Pricing 2024 report.
"Carbon pricing can be one of the most powerful tools to help countries reduce emissions,” Axel van Trotsenburg, Senior Managing Director at the World Bank, remarked in a statement, "That’s why it is good to see these instruments expand to new sectors, become more adaptable and complement other measures."
The World Bank stated that it has been monitoring carbon markets for approximately two decades. In its initial report, carbon taxes and emission trading systems accounted for 7 percent of the world's emissions.
However, the institution's latest 11th annual carbon pricing report now encompasses 24 percent of global emissions.
"Report findings show large middle-income countries including Brazil, India, Chile, Colombia, and Türkiye are making strides in carbon pricing implementation," the statement mentioned. "While traditional sectors like power and industry continue to dominate, carbon pricing is increasingly being considered in new sectors such as aviation, shipping and waste."
"Governments are also increasingly using carbon crediting frameworks to attract more finance through voluntary carbon markets and facilitate participation in international compliance markets," it further noted.
Despite the unprecedented revenues and expansion, less than 1 percent of global greenhouse emissions are presently subject to a direct carbon price at or above the threshold necessary to restrict temperature escalation to well below 2 degrees Celsius. The World Bank emphasized that bridging the implementation disparity between nations' climate pledges and policies will demand substantially greater political dedication.
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