30% of the world’s CO₂ emissions have a carbon price

What we pay for something in a shop often doesn’t reflect its true cost. Producing goods causes damage through carbon emissions that drive climate change, but the receipts for that damage rarely show up in the price. The costs are often hidden and diffuse, but that doesn’t mean it isn’t real.

One way to make people pay the full cost is to introduce a carbon price. This can take the form of a carbon tax or a trading system, which caps emissions and lets companies buy and sell permits.

Many countries now do this. Around 30% of the world’s carbon dioxide (CO₂) emissions have a carbon price. In the chart, you can see that this has doubled in the last decade. The biggest part of this rise came from China’s introduction of a trading system in its electricity sector.

While more and more of the world’s production has a carbon price, most prices are incredibly low. In a recent article, we showed that most priced emissions were valued at $10 or lower. That’s well below most estimates of the “social cost of carbon”, which tend to be greater than $100 per tonne.

Simply having a carbon price is not enough. It also needs to be high enough to change what people buy and make low-carbon alternatives worth investing in.

Where this page came from

This page was imported from Our World in Data. “30% of the world’s CO₂ emissions have a carbon price” by Hannah Ritchie, Pablo Rosado, published by Our World in Data under CC BY 4.0. Changed here: set as a page, its interactive charts shown as pictures. Data from third parties keeps its own licence.

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