Towards a recalibrated EU ETS for 2030: assessment of the legislative proposal to revise the EU ETS Directive

This 2025 edition of the Global Carbon Accounts presents a landscape of carbon pricing instruments through the lens of their current and potential contribution to scale up climate and development finance, as key discussions at the international level on the matter are taking place this year – notably in the context of the climate negotiations on the ‘Baku to Belem Roadmap to 1.3T’* and the Fourth Finance for Development Conference (FFD4). Several jurisdictions are already using carbon revenues to support a range of policy objectives, including decarbonization efforts and support for economic actors most affected by the transition. Yet there is still potential for them to further contribute to fill the gap.

On his first day in office, Prime Minister Mark Carney announced the elimination of the consumer carbon tax, in response to political pressures rather than evidence-based concerns about its effectiveness or impact on affordability. The tax had played a crucial role in reducing the country’s GHG emissions, and along with other carbon pricing policies, was expected to contribute nearly half of Canada’s emissions reductions by 2030. Additionally, the majority of revenues collected were redistributed to citizens, protecting vulnerable households. Thus, without alternative policies to compensate, eliminating the tax could slow emissions reductions and increase inflationary pressure, particularly for low- and middle-income families who benefited financially from the Canada Carbon Rebate funded by the tax. 

Frequently asked questions on the development and implementation of carbon pricing policies. This work aims to provide a carefully curated companion tool for jurisdictions considering or developing a carbon pricing instrument, with questions and answers (Q&A) focused on opportunities they can bring, specific challenges and policy choices pertaining to the design and implementation of carbon taxation and emission trading systems in emerging markets and developing economies (EMDES).