How emerging economies are redrawing the map of carbon pricing
Carbon-pricing systems now cover roughly 30% of global emissions, twice their 2020 reach, as countries including India and Vietnam begin applying limits to heavy-emitting sectors such as steel and cement.[2] Separately, a coalition co-chaired by China, Brazil and the European Union approved a work plan through 2030 aimed at making national carbon markets work with one another.[3]
Broader coverage puts more industrial emissions under an explicit cost or cap, while cooperation between markets could determine whether national systems can interact rather than remain isolated.[2][3]
Key insights
- The global emissions share covered by carbon-pricing measures has doubled from about 15% in 2020 to roughly 30%.[2]
- The emerging-market expansion reaches difficult-to-decarbonize industries, including steel and cement.[2]
- The coalition approved its 2030 work plan at its second meeting in Wuhan, and Brasília is negotiating a carbon-market agreement with Beijing.[3]