World Bank Report: Carbon Pricing Covers 22% of Global Greenhouse Gas Emissions

Guidehouse supports World Bank in publishing “State and Trends of Carbon Pricing 2020”

Worldwide, there are 61 carbon pricing initiatives in place or scheduled for implementation, covering 12 gigatons of carbon dioxide equivalent (GtCO2e) or about 22 percent of global greenhouse gas (GHG) emissions. Guidehouse supported the World Bank in preparing the latest “State and Trends of Carbon Pricing” report which was published last week.

The rise in GHG emission coverage is largely the result of the Mexico pilot ETS and New Brunswick carbon tax being legislated and launched, as well as the upcoming implementation of the Germany ETS and Virginia ETS. Overall, governments raised more than $45 billion from carbon pricing in 2019.

Carbon prices remain substantially lower than those needed to be consistent with the Paris Agreement. Despite the increased mitigation efforts from numerous jurisdictions and private entities, more climate action is required to achieve the Paris targets. Meanwhile, the coronavirus pandemic is testing the resilience of carbon pricing initiatives.

This year’s report covers a new chapter on carbon crediting mechanisms, providing an overview of the state and trends of crediting mechanisms around the world. The report shows that the past few years saw a surge of interest in crediting, with 42% of the crediting market over the past five years stemming from forestry, in line with a broader interest in nature-based solutions.

Download the State and Trends of Carbon Pricing 2020 report

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