Global carbon pricing revenue climbed above $107 billion in 2025, marking another milestone in the worldwide push to reduce greenhouse gas emissions and accelerate the transition to cleaner energy. The figure was revealed in the World Bank’s latest “State and Trends of Carbon Pricing 2026” report, highlighting the growing role of carbon taxes and emissions trading systems in financing climate action across the globe.
According to the report, annual income generated from carbon pricing mechanisms increased by 2 per cent in 2025, continuing a decade-long growth trajectory that has seen revenues rise from less than $30 billion in 2016 to more than $100 billion annually since 2021. The World Bank attributed the sustained growth to the increasing adoption of carbon pricing policies by countries seeking to meet their commitments under the Paris Climate Agreement.
The report further showed that emissions trading systems now cover more than 24 per cent of global greenhouse gas emissions, a significant increase from about 8 per cent a decade ago. While emissions trading schemes continue to gain momentum, carbon tax coverage has remained relatively stable at between 4 and 5 per cent of global emissions. Advanced economies still account for the bulk of carbon pricing revenues due to higher carbon prices and more mature regulatory frameworks.
Nigeria is among countries seeking to tap into the growing global carbon economy. Earlier this year, President Bola Ahmed Tinubu approved the operationalisation of Nigeria’s national carbon market framework, a move aimed at positioning the country as a leading carbon credit destination in Africa. The Federal Government estimates that the emerging carbon market could generate at least $3 billion annually by 2030 through carbon credit trading, climate investments and sustainable development projects.
Industry analysts believe Nigeria is well placed to benefit from rising global demand for carbon credits, citing its vast forest resources, renewable energy potential and expanding clean energy sector. However, experts stress that achieving the projected gains will depend on robust regulations, transparent carbon credit issuance processes and reliable emissions monitoring systems. They argue that stronger participation by African nations in global carbon markets could unlock much-needed climate finance while supporting economic growth, job creation and the continent’s long-term net-zero ambitions.
source: nairametrics