Carbon pricing revenue hit a record $84 billion in 2021

Carbon pricing revenue increased in 2021 by almost 60% compared to 2020, to around $84 billion, according to the World Bank’s annual report on global carbon market trends .

“These revenues are an important source of funds to help support a sustainable economic recovery, fund broader fiscal reforms, or invest in local communities to help transition to a low-carbon future.”said the World Bank in a press release issued recently on the occasion of the publication of the report.

The State and Trends of Carbon Pricing report currently identifies 68 instruments that put a direct price on CO2 emissions: 36 carbon taxes and 32 emissions trading systems. Four new devices have been implemented since the 2021 edition — one in Uruguay and three in North America (Ontario, Oregon, New Brunswick) — while Israel, Malaysia and Botswana have announced the upcoming introduction of carbon pricing policies, says the contribution.

The price of carbon has reached record highs in many jurisdictions, including the European Union, California, New Zealand, the Republic of Korea, Switzerland and Canada. However, the report finds that global emissions currently subject to a direct carbon price represent less than 4% only of the level that should be reached by 2030 to meet the objective of limiting global warming set by the agreement of Paris.

“The past year has been marked by very positive signals. The significant increase in carbon price revenues, in particular, makes it possible to increase investments in local communities and in support of the low-carbon transition. There is also progress in resolving issues related to CO2 emissions trading between countries, with the new rules for international carbon markets adopted at COP26 in Glasgow helping to set a clearer policy line.”emphasizes Bernice Van Bronkhorst, Global Director for Climate Change at the World Bank.

“It is now essential to maintain this momentum and to significantly increase both the level of carbon prices and that of the emissions subject to this price to ensure that the latter is fully mobilized for the benefit of a process inclusive decarbonization”, she added. The 2022 report looks specifically at the growing interest in cross-border cooperation on carbon pricing, the challenges and opportunities associated with rising energy prices, and new technologies and frameworks for governance shaping carbon markets.

.

Previous Post Next Post