• Global carbon pricing reached $103 billion in 2024, down from $106 billion in 2023, with the EU and China leading.
• South Africa’s carbon tax increased to 236 rand per tonne in 2025.
• Ghana transferred 11,733 ITMOs to Switzerland in 2025, a first for Africa.

Global carbon pricing revenues reached $103 billion in 2024, down slightly from a record $106 billion in 2023, according to the Global Carbon Accounts 2025 report by the Institute for Climate Economics (I4CE). The dip reflects lower carbon allowance prices in the European Union. The trajectory remains upward, from $84 billion in 2021 to $95 billion in 2022, as reported by the World Bank’s State and Trends of Carbon Pricing 2024, underscoring the growing significance of carbon markets globally—though Africa’s participation is minimal.

These revenues stem from 74 carbon pricing mechanisms in 2024, comprising emissions trading systems (ETS) and national carbon taxes. The EU’s Emissions Trading System (ETS), accounting for 41% of global revenues, and China’s national ETS are the most significant contributors, followed by Canada’s carbon tax (9%), Japan’s ETS, and South Korea’s hybrid systems, per I4CE data. Global emissions coverage increased from 24% in 2023 to 28% in 2024, although adequate coverage—excluding exemptions and free allowances—remains stagnant at 6%.

In Africa, South Africa stands alone with a national carbon tax, introduced in 2019. In January 2025, the tax rose from 190 to 236 rands per tonne of CO₂ (roughly $10-$13), with a planned increase to 462 rands ($25) by 2030, according to the South African Treasury. No other African nation has a comparable mechanism, underscoring a significant regional disparity.

This disparity was a focal point at the Africa Climate Summit in Nairobi in September 2023, where leaders decried the continent’s limited access to climate finance and its reliance on voluntary carbon markets, which are often seen as skewed against African interests. Kenya has explored regulatory frameworks for these markets in 2024, although formal policies remain unconfirmed, according to sources.

International cooperation, as outlined in Article 6 of the Paris Agreement, offers a potential lifeline. The mechanism allows countries to fund emissions reduction projects abroad in exchange for internationally transferred mitigation outcomes (ITMOs). In July 2025, Ghana became the first African nation to transfer 11,733 ITMOs to Switzerland, linked to a clean cooking stove programme, marking a milestone for the continent.

To close the gap, Africa needs concrete steps: national carbon taxes, robust regulation of voluntary markets, and deeper engagement with Article 6 frameworks. Without these, the continent risks missing out on the financial and environmental benefits of the global carbon pricing boom.

Originally Written in French By Abdel-Latif Boureima

Adapted in English by Idriss Linge