Visualized: The Price of Carbon Around the World in 2024
Visualized: The Price of Carbon Around the World
Only 1% of global emissions are priced high enough to meet the Paris Agreement’s temperature target in 2024.
This chart, created in partnership with the National Public Utilities Council, shows carbon prices around the world using data from the World Bank.
Let’s start by looking at what carbon pricing is and how it works.
What Is Carbon Pricing?
Carbon pricing is an environmental strategy aimed at reducing greenhouse gas emissions by assigning a monetary cost to carbon emissions.
The most common types of carbon pricing are emissions trading systems (ETS) and carbon taxes. The former sets an overall emission limit and allocates permits for trading, whereas the latter imposes a fee on emissions to increase their cost and incentivize reductions.
According to the World Bank, Finland and Poland were the first countries to implement a federal carbon price in 1990. The most recent countries, on the other hand, were Australia, Hungary, and Indonesia, implementing carbon pricing in 2023.
Carbon Prices, By Region
In 2017, the Carbon Pricing Leadership Coalition suggested that carbon prices should range from $50–100/tCO2 by 2030 to meet the Paris Climate Agreement’s temperature goal.
Fast forward to 2024, the global average carbon price is $32/tCO2—$18 short of the minimum that is needed in six years.
Carbon pricing varies significantly across different regions. Europe and Central Asia have the highest number of pricing initiatives out of any other world region, with an average price of $50/tCO2.
In the U.S. and Canada, the average price is slightly lower at $48 per ton, with 16 initiatives in place. North America’s approach is characterized by both federal and state/provincial systems, including notable schemes like Canada’s federal carbon pricing and the Regional Greenhouse Gas Initiative in the United States.
| Region | Average Carbon Price | Number of Initiatives |
|---|---|---|
| Europe & Central Asia | $50 | 26 |
| U.S. & Canada | $48 | 16 |
| Latin America & Caribbean | $24 | 11 |
| East Asia & Pacific | $11 | 18 |
| Africa | $10 | 1 |
The European Union’s ETS system was introduced in 2005. The initiative led to a 16% decrease in covered emissions between 2022 and 2023 and generated $47 billion. Several EU member countries have also implemented their own carbon pricing mechanisms to address sectors outside the EU ETS’s scope or to generate domestic revenue.
While there are notable efforts made in Europe, Central Asia, and North America, the highest carbon tax in the world belongs to Uruguay at $167/tCO2. According to the World Bank, Uruguay’s GDP per capita is $20,795, which is significantly lower than other countries with Paris Agreement-aligned carbon pricing.
Despite these differing initiatives, the global average carbon price still lags behind the levels likely needed to achieve the Paris Agreement targets, emphasizing the potential need for more robust and widespread adoption of carbon pricing to drive meaningful climate action.
-
Energy7 months agoVisualized: Offshore Wind Installations by Region (2023–2033)
This streamgraph shows projected offshore wind capacity by region, according to The Global Wind Energy Council.
-
Energy8 months agoRanked: The Largest Power Outages in the U.S. (2013–2023)
Severe weather caused all ten of the largest U.S. power outages in the past decade, highlighting the importance of grid resiliency.
-
Batteries8 months agoVisualized: Countries by Grid Storage Battery Capacity in 2023
This treemap chart uses data from Statistical Review of World Energy to show the top 10 countries with the most battery storage capacity in 2023.
-
Energy9 months agoVisualized: Which Countries Capture the Most Carbon?
This voronoi depicts the countries that capture the most carbon globally in 2023, with data from Rystad Energy.
-
Energy11 months agoRanked: Energy Transition Scores by Country in 2024
This bar chart shows the countries’ highest and lowest energy transition index scores determined by the World Economic Forum.
-
Energy12 months agoRanked: America’s Cheapest Sources of Electricity in 2024
This dumbbell plot shows the most and least expensive sources of energy in the U.S., using data from Lazard.
-
Energy12 months agoVisualized: Emission Reduction Targets by Country in 2024
This infographic shows the greenhouse gas emissions targets of all countries and their target years with data from Net Zero Tracker.
-
Energy1 year agoVisualized: Renewable Energy Capacity Through Time (2000–2023)
This streamgraph shows the growth in renewable energy capacity by country and region since 2000.
-
Environment1 year agoThe Rise in America’s Billion-Dollar Extreme Weather Disasters
From tropical cyclones to severe storms, the number of extreme weather disasters with losses exceeding $1 billion has climbed over time.
-
Environment1 year agoThe Most Polluted Cities in the U.S.
What are the most polluted cities in the U.S. according to data from the American Lung Association’s 2024 State of the Air Report?
-
Energy3 years agoVisualizing U.S. Greenhouse Gas Emissions by Sector
The U.S. emits about 6 billion metric tons of greenhouse gases a year. Here’s how these emissions rank by sector.
-
Sponsored4 years agoRoad to Decarbonization: The United States Electricity Mix
Can America become carbon-free by 2035? This graphic breaks down the United States’ electricity mix, by state.
-
Sponsored4 years agoRoad to Decarbonization: U.S. Coal Plant Closures
This infographic highlights announced coal plant closures in the U.S. and how much power will be affected.
