%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(22).png "World Bank's State and Trends of Carbon Pricing 2025 report")
- It tracks the progress of carbon taxes and emissions trading systems (ETSs) across different regions and sectors.
- Coverage Expansion: Carbon pricing now covers 28% of global greenhouse gas (GHG) emissions, with jurisdictions representing two-thirds of global GDP adopting pricing mechanisms.
- Revenue Generation: Over USD 100 billion was raised through carbon pricing in 2024, supporting climate policies and green investments.
- Growth of Instruments: The number of operational carbon pricing mechanisms has increased from 5 in 2005 to 80 in 2025, including 43 carbon taxes and 37 ETSs.
- Sectoral Influence: More than 50% of power sector emissions are now covered by a carbon price, with varying adoption across other industries.
- Emerging Markets: Nations like India, Brazil, and Türkiye are actively developing domestic carbon pricing frameworks.
- Carbon Credit Market Trends: Supply continues to exceed demand, with nearly 1 billion tons of unretired credits in 2024.
- Nature-Based Solutions: Afforestation and land restoration projects maintain strong premium pricing, while engineered carbon removal technologies gain traction.
Question:
Q.1 As per the World Bank’s 2025 report, what percentage of global greenhouse gas emissions are now covered by carbon pricing mechanisms?a) 28%
b) 22%
c) 15%
d) 35%
Answer: a) The report states that carbon pricing now covers 28% of global GHG emissions, marking a significant expansion in coverage globally.
