The World Bank has disclosed that global revenues generated from carbon pricing mechanisms exceeded $107 billion in 2025.
The disclosure was contained in the bank’s “2026 State and Trends of Carbon Pricing” report.
According to the World Bank, annual revenues from emissions trading systems and carbon taxes increased by two per cent in 2025, extending a decade-long growth trend.
The report noted that carbon pricing revenues have grown from less than $30 billion in 2016 to more than $100 billion annually since 2021.
The institution attributed the growth to increasing global adoption of carbon pricing frameworks as countries intensify efforts to meet climate commitments under the Paris Agreement.
The World Bank explained that the continued expansion of carbon pricing systems is reshaping global climate financing structures.
It stated that the share of global greenhouse gas emissions covered by emissions trading systems increased from about eight per cent in 2016 to more than 24 per cent in 2025.
However, the report noted that carbon tax coverage has remained relatively stable at between four and five per cent of global emissions.
According to the World Bank, most carbon pricing revenues are still generated in advanced economies due to higher carbon prices and more established emissions trading frameworks.
The report added that several middle-income countries are yet to fully adopt auction-based emissions trading systems.
It also highlighted Japan’s newly established GX-ETS, which is expected to channel future proceeds toward national energy transition and decarbonisation projects.
The World Bank projected further growth in global carbon pricing coverage from 2026 as countries including India, Japan, and Viet Nam continue expanding their national emissions trading systems.
Meanwhile, Nigeria has intensified efforts to establish a functional carbon market as part of its broader climate and energy transition strategy.
In January 2026, President 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 government announced plans to mobilise up to $3 billion yearly in climate finance through the National Carbon Market Framework and Climate Change Fund.
Industry experts believe Nigeria stands to benefit significantly from the rapidly expanding global carbon economy because of its natural resource base and renewable energy potential.
Analysts identified Nigeria’s vast forest reserves, renewable energy opportunities, and growing clean energy market as major advantages in the emerging carbon market space.
Carbon markets are increasingly being viewed as alternative revenue sources for developing economies while also supporting job creation and technology transfer.
Stakeholders have also emphasised the need for strong regulatory frameworks, credible emissions monitoring systems, and transparency in carbon credit issuance.
Climate finance advocates further argued that stronger African participation in global carbon pricing systems could help close financing gaps needed to support climate adaptation and net-zero ambitions across the continent.
