Connect with us

Hi, what are you looking for?


Carbon Pricing

Carbon Pricing Schemes Have Almost Doubled Since 2012

The World Bank has concluded that carbon pricing schemes globally have almost doubled since 2012, and are now worth about $50 billion.

In a new Feature Story on its website, The World Bank Group have praised the efforts of nations, cities, and businesses the world over, for implementing carbon pricing schemes. The Feature Story was also accompanied by a new report, published by the World Bank Group and Ecofys, in conjunction with the OECD and with input from the International Monetary Fund (IMF), which claims that the number of implemented or planned carbon pricing schemes globally has almost doubled since 2012, and is now worth about $50 billion.

World Bank-1Specifically, around 40 nations and 23 cities, states, or regions are now using a carbon price, representing the equivalent of about 7 billion tonnes of carbon dioxide, or 12% of annual global greenhouse gas emissions — showing just how powerful carbon pricing can be.

“The world needs to find effective ways to reduce carbon pollution,” said Jim Yong Kim, World Bank Group President. “We must design the best ways to price carbon in order to help cut pollution, improve people’s health, and provide governments with a pool of funds to drive investment in a cleaner future and to protect poor people.”

In another report, the World Bank Group lays out six key principles, the FASTER Principles, for putting a price on carbon based on economic principles and experience of what has come before — what has worked, what hasn’t, and how best to do it:

  • Fairness
  • Alignment of policies and objectives
  • Stability and predictability
  • Transparency
  • Efficiency and cost-effectiveness
  • Reliability and environmental integrity

“With COP21 fast approaching, the need for meaningful carbon policies is more important than ever,” said said Angel Gurría, Secretary-General of the OECD. “Carbon pricing is central to the quest for a cost-effective transition towards zero net emissions in the second half of the century. These principles will help governments to incorporate carbon pricing as a key part of their policy toolkit.”

With over a decade’s experience supporting the findings from the FASTER report, governments and businesses will have access to a knowledge-base of what has worked before, and what hasn’t. The World Bank explains that:

” … well-designed carbon pricing schemes are a powerful and flexible tool that can cut emissions that cause climate change and if adequately designed and implemented can play a key role in enhancing innovation and smoothing the transition to a prosperous, low-carbon global economy.”

“Carbon pricing is effective in reducing emissions that cause climate change, is straightforward to administer, can raise valuable revenues for broader fiscal reforms, and can help address local pollution as well as global climate change,” said said Christine Lagarde, Managing Director of the International Monetary Fund. “We welcome the opportunity to continue collaborating with the World Bank, OECD, and others on this critical policy tool.”

The reports and the World Bank’s feature article come at an opportune time, considering China’s breathtaking announcement of a new carbon trading system designed to help reduce the country’s greenhouse gas emissions. Chinese President Xi Jinping last week made the announcement jointly with US President Barack Obama during the former’s US tour, explaining that his country’s new carbon trading system will be a cap-and-trade system, the world’s largest emissions trading program, intended to be launched in 2017.

And while some countries remain stoically against such schemes (with Australia as a prime example, being the only country to ever roll back a carbon trading scheme), the World Bank’s reports are sure to garner a lot of international attention, which will surely continue to rise the profile of carbon trading schemes as an effective means to combat environmental concerns.

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (, and can be found writing articles for a variety of other sites. Check me out at for more.


You May Also Like

Clean Power

Indian solar module manufacturer Insolation Solar has secured funding from a World Bank-backed fund for expansion of its production line.  The funding was released...

Clean Transport

The World Bank has just released a new research study on how developing countries can transition to electric mobility. The in-depth 228-page study explores...


The tiny island nation of Barbados could wield a big green hydrogen stick while demonstrating that energy and food security can coexist.

Climate Change

Climate change was on the agenda at the United Nations this week, but according to all reports, it took a back seat to other...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.