Executive summaryState and Trends of Carbon Pricing 2022Executive summaryCARBON PRICING CAN PROVIDE THE IMPETUS FOR ECONOMIC TRANSFORMATION AND RECOVERY• More ambitious carbon prices can help close the gap between pledgesand policy and “keep 1.5 alive.”• Along with lowering emissions, carbon pricing can improve energyand industrial efficiency, limit reliance on imported energy, promotecleaner air, protect and regenerate landscapes, and provide a valuablesource of government revenue.• But adopting carbon prices remains politically challenging, particularlyamid rising inflation and energy prices. There is a clear need to ensurepolicies are fair, effective, and embedded within integrated climateand social policies.Executive summaryDIRECT CARBON PRICING CONTINUES TO BE ADOPTED BUT GLOBAL COVERAGE REMAINS LOW• Worldwide, 68 carbon pricing instruments (CPIs), including taxes andemissions trading systems (ETSs), are operating and three more arescheduled for implementation.• CPIs in operation cover approximately 23% of total global greenhousegas (GHG) emissions. This represents a small increase in total globalcoverage as a result of four new systems commencing in the past year.• The International Maritime Organization is considering placing a priceon emissions from international shipping activities. If adopted, thiswould represent a major step in tackling global GHG emissions.Executive summaryMAP OF CARBON TAXES AND EMISSIONS TRADING SYSTEMSETS implemented or scheduled for implementationCarbon tax implemented or scheduled for implementationETS and carbon tax implemented or scheduledETS implemented or scheduled, carbon tax under considerationCarbon tax implemented or scheduled, ETS under considerationETS or carbon tax under considerationIndo...
