The new Carbon Pricing Watch 2016 report by ECOFYS and the World Bank shows that a challenging international carbon market has not stopped the development of domestic carbon pricing initiatives.

In 2016, about 40 national jurisdictions and over 20 cities, states, and regions, including seven out of the world’s 10 largest economies, are putting a price on carbon.  These jurisdictions are responsible for almost a quarter of global GHG emissions. On average, carbon pricing initiatives cover about half of the emissions in these jurisdictions, translating to about 7 gigatons of carbon dioxide equivalent (GtCO2 e) or about 13 percent of global GHG emissions. This figure represents a threefold increase over the past decade.

 

Carbon Pricing Watch 2016 report by ECOFYS and the World Bank

 

In 2015, governments raised about US$26 billion in revenues from carbon pricing initiatives – a 60% increase compared to the revenues raised in 2014, which were estimated to be about US$16 billion.

Looking ahead, the implementation of the Paris Agreement could enable jurisdictions to expand their carbon pricing initiatives and facilitate cooperation. The alignment of domestic and international carbon pricing initiatives with other domestic-level climate mitigation actions will be a key priority. To continue to build momentum, the High Level Panel on Carbon Pricing, a group of government leaders and international organizations, set forward a global target to double the emissions covered by carbon pricing initiatives to 25 percent by 2020, and to double this coverage again within a decade.

Read more in the Carbon Pricing Watch 2016 advance brief