Global Carbon Markets Cross One Hundred Billion Dollars, but India’s Carbon Trading System Is Still Finding Its Footing
Global carbon markets have crossed the $100 billion mark for the second year in a row, signalling the growing acceptance of carbon pricing as a central climate policy tool. Nearly 28 per cent of global greenhouse gas emissions are now covered by a direct carbon price, a sharp rise from just 5 per cent in 2005, according to the World Bank State and Trends of Carbon Pricing 2025 report. While this expansion reflects progress at the global level, India’s experience with carbon markets suggests that scale alone does not guarantee meaningful emission reductions.
Across the world, carbon pricing instruments are expanding rapidly. The World Bank report notes that 80 direct carbon pricing mechanisms are currently operational, including 37 emissions trading systems and 43 carbon taxes. Much of t...









