Carbon pricing covers nearly 30 percent of global emissions

Carbon pricing now covers nearly 30% of global greenhouse gas emissions and raised more than $107 billion for public budgets in 2025. The next question is not just whether emissions are priced, but how those revenues are recycled into competitiveness, resilience and real-economy decarbonization.

Coverage and revenue are the two figures that get quoted, but the third question in the post is the one that decides whether pricing changes behavior. Revenue that is returned as compensation preserves the status quo. Revenue that is recycled into competitiveness and real-economy abatement changes the investment case for the industries being priced.

Recycling is also where corporate value chains can act without waiting for governments. A buyer facing a carbon cost on imported steel or cement has a financial reason to fund the supplier's reduction directly and to recover part of the value as a Scope 3 claim. That private recycling channel is what insetting provides.