May 20, (THEWILL) — Global revenues generated from carbon pricing mechanisms rose above $107 billion in 2025, according to the World Bank’s latest “State and Trends of Carbon Pricing 2026” report.
The report showed that annual revenues from emissions trading systems (ETSs) and carbon taxes increased by 2 percent in 2025, extending a decade-long growth trajectory. Global carbon pricing revenues have climbed significantly from less than $30 billion in 2016 to over $100 billion annually since 2021.
The World Bank attributed the sustained increase to the growing adoption of carbon pricing frameworks by countries seeking to meet their climate commitments under the Paris Agreement.
According to the report, emissions trading systems now cover more than 24 percent of global greenhouse gas emissions, compared to about 8 percent in 2016. However, carbon tax coverage has remained relatively stable, accounting for roughly 4 percent to 5 percent of global emissions.
The bank noted that advanced economies continue to generate the bulk of global carbon pricing revenues due to higher carbon prices and more established emissions trading systems. Several middle-income countries are still in the early stages of adopting auction-based carbon markets.
Japan’s newly launched GX-ETS, for instance, is expected to channel future proceeds into energy transition and decarbonisation projects. The World Bank also projects wider global carbon pricing coverage from 2026 as countries including India, Japan and Vietnam expand their national ETS frameworks.
In Nigeria, the Federal Government has intensified efforts to establish a functional 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, a move expected to position the country as one of Africa’s emerging carbon credit hubs.
The government projects that Nigeria’s carbon market could generate at least $3 billion annually by 2030 through carbon credit trading and climate-related investments.
Industry experts believe Nigeria stands to benefit significantly from the expanding global carbon economy due to its vast forest reserves, renewable energy potential and growing clean energy market. Analysts also stress the need for strong regulations, credible emissions monitoring systems and transparency in carbon credit issuance to attract investors and strengthen market confidence.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
