How much are people across the world paying for their carbon emissions?

• Around 30% of global CO2 emissions are currently covered by a carbon price (tax or trading scheme), leaving 71% of emissions completely unpriced.
• While there is a consensus among environmentalists and economists that polluters should pay for damage, most existing carbon prices fall far below the estimated "social cost of carbon," which experts place at over $100 per tonne.

Global Pricing Landscape

• Coverage of carbon pricing has grown from 7% of global emissions in 2010 to 30% last year.
• A tiny fraction (less than 0.5% of total emissions) is taxed at over $100 per tonne, including countries like Sweden, Switzerland, and Uruguay.
• The EU’s Emissions Trading Scheme accounts for approximately 5% of global emissions, with prices in the $65–90 range.
• The vast majority of carbon markets are priced very low, often under $10 per tonne.

Economic Implications

• Low carbon prices have negligible impacts on consumer fuel costs; at $5–$10 per tonne, petrol prices rise by only 1–2%.
• Significant price changes only occur when carbon prices reach the $100 per tonne range, which would increase petrol prices by about 15%—a magnitude comparable to regular volatility in global oil markets.

The Social Cost of Carbon

• Academic literature consistently estimates the social cost of carbon at over $100 per tonne of CO2.
• Experts generally agree that carbon taxation is a more cost-effective method to reduce emissions compared to other policy alternatives.