According to the World Bank's annual report, revenues from carbon taxes and Emissions Trading Systems (ETS) have reached a record high of approximately USD95bn. Despite economic challenges such as inflation, fiscal pressures, and energy crises, governments are prioritizing carbon pricing policies to incentivize climate action. Currently, nearly a quarter of global greenhouse gas emissions (23%) are covered by 73 instruments, compared to only 7% a decade ago. ETS establishes a market price for emissions by limiting greenhouse gas emissions and allowing trading, while carbon taxes directly set a price on carbon through tax rates on emissions.

Source: ESGNews