New Delhi, June 12 -- Countries are increasingly adopting carbon pricing, which now represents almost two-thirds of global Gross Domestic Product, according to a new World Bank report titled State and Trends of Carbon Pricing 2025.

The number of operational carbon pricing instruments has grown significantly, from 5 in 2005 to 80 today, with India, Brazil, and Turkiye actively developing them.

Carbon pricing instruments capture the external costs of greenhouse gas (GHG) emissions. These external costs-such as damage to crops, healthcare expenses from heat waves and droughts, and property loss from flooding and sea level rise-are typically borne by the public. Carbon pricing mechanisms tie these costs to their sources, usually through a ...