Current Status of Carbon Pricing Worldwide

Current Status of Carbon Pricing Worldwide


Carbon pricing mechanisms include include emissions trading systems (ETS), carbon taxes, carbon credits, and internal carbon pricing. Carbon prices around the world rose during 2021, in large part due to net zero targets and tightening pollution restrictions related to COP26. Other contributing factors have been greater use of coal due to higher natural gas prices, a price floor push from Germany, and upcoming deadlines for options trading. Just 22% of global GHG emissions are priced, and only 4% are priced at Paris-compatible levels. Most ETS’s are focused on heavy industry and power sectors, while carbon taxes sometimes include all sectors. Generally, the taxes are applied to the highest level of the value chain (i.e. producers and importers), and in a minority of cases applied directly to users. In the US, a methane fee is under consideration in Congress. It would apply a tax of $900/ton to oil & gas operations in 2023, increasing to $1500/ton in 2025. Europe has the most mature ETS, with other carbon pricing leaders being Canada and, South Korea, and New Zealand.

Carbon pricing is an effective economic measure for refelcting the true costs associated with greenhous gas emissions. This report provides an introduction to the different types of carbon pricing mechanisms, current global price levels, sectors that are covered by carbon pricing, gives context to the current scope and scale of carbon pricing coverage, addresses the pricing level needed to reduce emissions and the effectiveness of using carbon pricing, and shows which countries or regions currently use or are considering implementing carbon pricing.


  • Introduce the mechanics of carbon pricing schemes
  • Examine the effectiveness of carbon pricing in reducing emissions
  • Review the current price of carbon and sectoral coverage globally
  • Learn where carbon pricing is currently applied or under consideration
  • Reasons to Buy
    • Learn what factors have led to record-high carbon prices in 2021
    • Understand what pricing levels are needed to meet Paris targets
    • See which oil & gas companies are using carbon pricing
    • Understand where carbon pricing is likely to be implemented

    Companies Mentioned

    Companies Mentioned


    • Executive Summary
    • Carbon Pricing Basics
      • Carbon Pricing is a Necessary Tool for Energy Transition
      • Carbon Pricing can Drive Cost-Effective Decarbonization
      • Emissions Trading Schemes: A Market-Based Solution
      • Carbon Taxes: Emissions Reduction is Left to the Market
      • Carbon Crediting: Offsetting Emissions
      • Internal Carbon Pricing: A Company-Level Approach
    • Current Status of Carbon Pricing
      • EU and UK see record-high carbon prices in 2021
      • EU ETS – An Important Component of EU Decarbonization Goals
      • Carbon Prices Must Increase to Meet Climate Goals
      • Carbon Pricing Covers Only 22% of Global Emissions
      • Heavy Industry and Power Sectors Concentrate Carbon Pricing
      • Effective Carbon Rates Provide an Indicator of Pricing Reach
      • COP26 Established a Framework for International Carbon Crediting
    • Active and Planned Pricing Schemes
      • US & Canada
      • Latin America
      • Middle East, Asia & Oceania
      • Europe
      • Africa
      • About GlobalData

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