The World Bank has disclosed that global revenues generated from carbon pricing mechanisms exceeded $107 billion in 2025.
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This is according to the bank’s “2026 State and trends of carbon pricing” report.
According to the World Bank, annual revenues from emissions trading systems (ETSs) and carbon taxes increased by 2% in 2025, extending a decade-long growth trend that has seen carbon pricing revenues rise from less than $30 billion in 2016 to above $100 billion annually since 2021.
The institution said the growth reflects accelerating global adoption of carbon pricing frameworks as countries intensify efforts to meet climate commitments under the Paris Agreement.
What the report is saying
The World Bank said the expansion of carbon pricing systems continues to reshape global climate financing structures.
- The share of global greenhouse gas emissions covered by emissions trading systems has expanded from about 8% in 2016 to more than 24% in 2025.
The report noted that while emissions trading systems continue to expand globally, carbon tax coverage has remained relatively stable at around 4% to 5% of global emissions.
The World Bank said most carbon pricing revenues are still generated in advanced economies due to higher carbon prices and more developed emissions trading frameworks.
- Several middle-income economies are yet to fully adopt auction-based emissions trading systems.
- Japan’s newly established GX-ETS is expected to direct future proceeds toward national energy transition and decarbonisation projects.
- The World Bank projects further growth in global carbon pricing coverage from 2026 as countries, including India, Japan and Viet Nam, expand national ETS frameworks.
Developments in Nigeria
Nigeria has intensified efforts to establish a functional carbon market as part of its broader climate and energy transition strategy.
- In January 2026, Bola Ahmed Tinubu approved the operationalisation of Nigeria’s national carbon market framework.
- The initiative is expected to position Nigeria as one of Africa’s emerging carbon credit hubs.
- The Federal Government has projected that Nigeria’s carbon market could generate at least $3 billion annually by 2030 through carbon credit trading and climate-related investments.
Earlier in November 2025, the Federal Government unveiled plans to mobilise up to $3 billion yearly in climate finance through the National Carbon Market Framework and Climate Change Fund.
What you should know
Industry experts believe Nigeria could benefit significantly from the rapidly expanding global carbon economy due to its natural resource base and renewable energy potential.
- Analysts cite Nigeria’s large forest reserves, renewable energy opportunities and growing clean energy market as major advantages.
- Carbon markets are increasingly viewed as alternative revenue sources for developing economies while supporting job creation and technology transfer.
- Stakeholders have stressed the need for strong regulatory frameworks, credible emissions monitoring systems and transparency in carbon credit issuance.
Climate finance advocates also argue that stronger African participation in global carbon pricing systems could help bridge financing gaps needed to support climate adaptation and net-zero ambitions across the continent.
