LONDON (Reuters) - The value of global schemes to put a price on carbon dioxide (CO2) emissions and designed to reduce greenhouse gases blamed for global warming totals $82 billion, the World Bank said in a report on Tuesday.
The report estimates that 25 emission trading schemes and 26 carbon taxes worldwide are worth $82 billion, a 56 percent increase on their 2017 value of $52 billion.
These carbon pricing initiatives cover 11 gigatonnes of carbon dioxide emissions, or 20 percent of global greenhouse gas emissions.
Around $22 billion of the rise in value was from higher prices in the EU’s Emissions Trading System, the world’s largest carbon market. Higher carbon tax rates in Alberta and France also contributed to the growth in value, the report said.
However, carbon prices are generally still way below the $40-80 per ton range thought to be necessary in 2020 to help meet a goal to limit the global average temperature rise.
Currently, around half of the emissions covered by carbon pricing initiatives are priced at less than $10 a ton, the report said.
“Looking ahead, this trend is set to continue, as indicated by some of the jurisdictions which are planning carbon price increases,” the World Bank said.
“This includes emerging carbon pricing initiatives, which are launching at relatively low price levels, with the intention of scaling up over time,” it added.
Governments raised around $33 billion in carbon pricing revenues in 2017, compared with $22 billion the previous year, the report said.