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According to the World Bank's annual "State and Trends of Carbon Pricing" report, revenues from carbon taxes and ETS reach approximately how many billions?
A)
$73 Billion
B)
$81 Billion
C)
$90 Billion
D)
$95 Billion

Correct Answer :   $95 Billion


Revenues from carbon taxes and Emissions Trading Systems (ETS) have reached a record high, about $95 billion, finds the World Bank’s annual “State and Trends of Carbon Pricing” report released 23rd May 2023.

* This is despite the challenging context for governments facing high inflation, fiscal pressures, and energy crises.

* Carbon pricing can be an effective way to incorporate the costs of climate change into economic decision making, thereby incentivizing climate action. said Jennifer Sara, Global Director for Climate Change at the World Bank.

* The good news from this report is that even in difficult economic times, governments are prioritizing direct carbon pricing policies to reduce emissions. But to really drive change at the scale needed, we will need to see big advances both in terms of coverage and price.

* The World Bank has been tracking carbon markets for around two decades and the annual State and Trends of Carbon Pricing report is now in its tenth year. When the first report was published a decade ago, only 7% of global emissions were covered by either a carbon tax or an ETS.

* 23 May 2023, as highlighted in the 2023 report, almost a quarter of global greenhouse gas emissions (23%) are now covered by 73 instruments. An ETS places a limit on the amount of greenhouse gas emissions – it allows emitters with lower emissions to sell their extra emission units (or “allowances”) to higher emitters, thereby establishing a market price for emissions. A carbon tax, meanwhile, directly sets a price on carbon by defining a tax rate on emissions..

Source : World Bank

Published On : May 25, 2023
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