Key Insights from World Bank’s 2023 Carbon Pricing Report

Amid the global energy crisis and economic issues, revenues from carbon credits traded in emissions trading systems (ETS) and carbon taxes hit record high in 2022 reaching almost $100 billion, per the World Bank carbon pricing report. 

Carbon pricing is an essential policy tool useful in decarbonizing global economies. Through various instruments, carbon prices bring economic incentives to make climate-friendly changes in consumption, production, and investment. 

The World Bank’s State and Trends in Carbon Pricing 2023 report provides an updated overview of the existing and emerging carbon pricing instruments worldwide. It also explores the trends and drivers of those instruments, including carbon taxes, carbon crediting mechanisms, and emissions trading systems. 

As highlighted in the report, carbon pricing has to continue growing, in price and coverage, to drive climate action and meet the Paris goals. Here are the six key takeaways from the World Bank ( article continues at CarbonCredits.com )