Sectoral coverage of carbon pricing mechanisms worldwide 2023, by mechanism
In 2023, 55 percent of global industry and construction emissions were covered by a carbon pricing mechanism. Of this total, 42 percent were subject to emissions trading systems (ETSs), 11 percent to carbon taxes, and two percent to both mechanisms simultaneously. 42 percent of global heat and electricity production emissions were also covered by ETSs in 2023. Meanwhile, just eight and seven percent of building and transportation sector emissions were covered by ETSs, respectively. However, the EU ETS II will cover emissions from both these sectors when it becomes operational in 2027.