The World Bank published its annual report, "State and Trends of Carbon Pricing 2026," on May 19, 2026. According to the report, carbon pricing instruments — including carbon taxes and emissions trading schemes (ETS) — now number 87 worldwide, covering 29% of global GHG emissions, up sharply from 7% in 2012.
Market Expansion and Fiscal Impact
Government revenues from global carbon credit and permit trading exceeded $107 billion in 2025, with cumulative ETS revenues more than tripling since 2016. While revenue allocation varies by jurisdiction, Japan's GX-ETS is structured to channel proceeds into a transition fund for next-generation energy and decarbonization — underscoring a clear intent to deploy carbon pricing as both a fiscal and industrial transformation tool.
New Markets in 2026: Japan, India, and Vietnam
The report highlights that Japan, India, and Vietnam each launched emissions trading schemes in 2026. Japan's GX-ETS entered full implementation for carbon-intensive sectors in fiscal year 2026, while India's Carbon Market (CBM) is being developed as infrastructure for formally measuring and trading domestic industry emission reductions. Vietnam has also begun operating its own pilot ETS. The continued adoption of these instruments — across both developed and emerging economies — signals that carbon pricing has moved from a localized environmental policy measure to a dimension of international economic and competitive policy.
The Ripple Effects of CBAM
The report estimates that the EU's Carbon Border Adjustment Mechanism (CBAM) will directly affect less than 0.5% of global trade — covering steel, aluminum, fertilizers, cement, and other EU-bound exports — yet places greater emphasis on its "catalyst effect." The analysis finds that exporters' drive to avoid CBAM certificate costs on goods destined for Europe is generating domestic pressure to establish national carbon pricing regimes, thereby incentivizing broader adoption. This reinforces the view that CBAM is functioning less as a trade barrier and more as an accelerant for the global spread of carbon pricing.
Practical Implications for Japanese Companies
The report carries three practical implications for Japanese companies. First, with GX-ETS now in full operation, a de facto carbon price applies to CO₂ emissions at domestic manufacturing sites — making it essential to internalize carbon costs in capital expenditure decisions and procurement sourcing. Second, the launch of ETSs in India and Vietnam adds complexity to carbon cost calculations across Asian supply chains. Third, CBAM certificate costs remain relatively modest for now, but as EU ETS prices rise they will directly affect the price competitiveness of goods exported to Europe, requiring integration into long-term product design and manufacturing location decisions. The World Bank report is one of the few annual cross-jurisdictional references available, and serves as a useful starting point for teams responsible for tracking global carbon pricing trends.