Menu
FR
search
Publications Steering tools for financing the environmental transition

Global Carbon Account in 2020

14 May 2020 - Climate Brief - By : Sébastien POSTIC, Phd / Marion FETET

Explicit carbon pricing systems – a tax or a carbon market – continue to develop around the world. In the 2020 edition of its Global Carbon Accounts, I4CE presents the main trends and provides an overview of these public policies: the countries that have adopted them, the sectors covered, the price levels, the revenues generated and what is being done with them. Find all this information in graphics.

 

 

4 key trends for 2020

  1. As of April 1st, 2020, 44 countries and 31 provinces or cities are operating a carbon pricing scheme, through a carbon tax and/or an Emissions Trading System (ETS). Together, these jurisdictions account for around 60% of global GDP. 3 new countries have implemented an explicit price on carbon over the past year: Canada, South Africa and Singapore.
  2. Depending on the authority enacting the initiative, the explicit carbon prices as of March 1st, 2020, range from less than USD 1 (approximately EUR 1) to USD 123 (EUR 114) per ton of CO2e, However, more than 75% of emissions regulated by carbon pricing are still covered by a price below USD 10 (EUR 8). To stay on the 2°C trajectory while sustaining economic growth, the High-Level Commission on carbon prices led by economists Stern and Stiglitz recommends carbon prices between USD 40 and USD 80 per ton of CO2e by 2020, and between USD 50 and USD 100 per ton of CO2e by 2030.
  3. Carbon pricing schemes generated USD 48 billion (EUR 42 billion) in 2019, a slight increase compared with 2018 (USD 45 billion). 53% of the 2019 revenue stems from carbon taxes while the other 47% are generated by carbon quotas. These carbon revenues are mostly directed to the general budget or earmarked for specific environmental or broader development projects.
  4. The global economic crisis triggered by the Covid-19 resulted in a drop of carbon emissions. In 2008, the financial crisis caused a price collapse on carbon markets, wiping out the financial incentive for industries to reduce their emissions. Since then, price stabilization measures have been implemented to address this fragility. The current health and economic crises will be a real test to the stabilization mechanisms in place (see opposite).

 

 

 

 

I4CE

 

See the carbon pricing revenues in G20 countries

 

Principal sources and useful links:

 

Global Carbon Account in 2020 Download
I4CE Contacts
Sébastien POSTIC, Phd
Sébastien POSTIC, Phd
 Research Fellow – Public finance, Development Email
Marion FETET
Marion FETET
 Research Fellow – Local authorities, Public Finance, Green Budgeting Email
Related publications See all publications
To learn more
  • 11/07/2025 Foreword of the week
    COP30: On Financing, the Time for Negotiation Is Over

    “What agreement will the negotiators reach?” is the question that is usually on climate practitioners’ minds at this time of the year. However, this time, it is a new impetus that is needed, not another agreement. 10 years after the Paris Agreement, the Brazilian COP30 presidency has rightly shifted the focus to execution, making this edition “the implementation COP.” On financing, the objectives set at COP29 are clear: developing countries should receive $300 billion per year by 2035 from developed countries (NCQG), and mobilise $1.3 trillion per year from all actors. The newly published “Baku to Belém” roadmap proposes solutions to meet the targets. We now have objectives and a list of (theoretical) means to achieve them. How do we move to implementation? 

  • 11/05/2025 Blog post
    From Pledges to Progress: Climate Finance a Decade After Paris

    Nearly a decade has passed since the Paris Agreement elevated finance to the heart of the climate agenda, embedding in Article 2.1(c) the ambitious goal of aligning global financial flows with low-emission, climate-resilient development. But for all the talk of “shifting the trillions,” we remain far from course. 

  • 10/28/2025
    From targets to action: the climate finance agenda needs a new impetus in Belèm

    Ten years after the adoption of the Paris Agreement, what progress has been made to make financial flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development (the ambition set out in Article 2.1(c) of the Agreement)? And what is needed going forward? Although we still lack a comprehensive assessment of progress, this article draws on existing analysis of what can help align financial flows and examines the efforts made by governments and the financial sector to this end. It highlights a development in the debate towards a country-driven approach and a focus on real investment needs. It explores ways to overcome existing barriers to action despite a challenging global context. The article advocates that Article 2.1(c) should be viewed not as a stand-alone provision, but as something that requires full implementation of all the provisions of the Paris Agreement. It also calls for a shift from a target-focused to an action-focused finance agenda and discusses how the COP30 in Belém can contribute to this.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !
Fermer