Carbon pricing mechanisms delivered record revenues last year, hitting $95bn for the first time, according to a new analysis from the World Bank.
The Bank’s latest report – titled State And Trends of Carbon Pricing – confirmed that carbon taxes and emissions trading schemes (ETS) are proving an increasingly valuable source of revenues for Treasuries wrestling with high inflation and fiscal pressures.
“Carbon pricing can be an effective way to incorporate the costs of climate change into economic decision making, thereby incentivizing climate action.” said Jennifer Sara, global director for climate change at the World Bank. “The good news from this report is that even in difficult economic times, governments are prioritising direct carbon pricing policies to reduce emissions.”
However, she added that “to really drive change at the scale needed, we will need to see big advances both in terms of coverage and price”.
The report, which is now
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