4. Carbon pricing that is struggling to boost NDCs

As of 2025, there are 81 carbon tax schemes and emissions trading systems (ETS) in place worldwide (six more than a year ago). Brazil, India, and Turkey have taken key steps toward implementing an ETS, while Colombia and Indonesia have expanded their coverage.

The share of global emissions and economic activity subject to direct carbon pricing continues to rise. The expansion of China’s system to industrial sectors has increased global coverage of direct carbon pricing from 24% to nearly 28%. More than half of global emissions from the electricity sector and nearly half of those from industry are now subject to a carbon price. Coverage remains low in other sectors, particularly agriculture.

Direct carbon pricing (ETS and taxes) generated more than $102 billion in 2024 for public budgets. Carbon revenues declined slightly compared to 2023,...