Domestic Carbon Markets
Domestic carbon markets, which exist separate from international exchanges, can support NDCs and country-level platforms.
2030 Goals
- Development and implementation of domestic carbon markets that capitalize on the actions of domestic private sector and support meeting NDCs targets using light-touch compliance approaches.
- Globally accepted integrity standards for carbon credits created and traded.
- Markets developed in coordination with national / regional climate strategies, including country-level platforms.
StatusModerate progress
Moderate progress
- A few countries have explored ways to build out domestic carbon markets, with varying success. It has re-entered the conversation as a key focus, with significant country interest in both developed economies and EMDEs.
- According to the World Bank, there are 74 carbon taxes and emissions trading systems implemented under national and subnational jurisdictions as of 2025. These instruments now cover 28% of global greenhouse gas emissions, with carbon pricing representing 65% of global GDP.
- The World Bank also reported that there are 34 government-administered carbon crediting mechanisms under national and subnational jurisdictions as of 2024. Some governments see expansion of domestic carbon credits as a springboard for participating in international carbon markets, while others focus on domestic use, such as for companies to offset domestic compliance requirements.
Leading Actors
Private FIs
CME Group, Intercontinental Exchange, Inc
Public FIs
China Clean Development Mechanism Fund (Participating), Development Bank of Nigeria, Development Bank of Southern Africa, Brazilian Development Bank (BNDES)
Multilateral Development Banks
World Bank
Leading Countries
Egypt, Nigeria, Brazil, South Africa
Alliances
G20
Supportive Stakeholders
Institute for Climate and Society, CONCITO, Environmental Defense Fund (cap and trade), International Emissions Trading Association, Gold Standard, Verra
Milestones
The below events contain milestones related to Domestic Carbon Markets.
November
UNFCCC COP30
Milestones
Domestic Carbon Markets
Establish clearer rules on when and how domestic credits can be used in international compliance markets.
Resources
The below resources all pertain to the topic of Domestic Carbon Markets.
Carbon Market Regulations Tracker
Carbon Markets, Domestic Carbon Markets
The Carbon Market Regulations Tracker is developed to enhance the understanding and transparency of carbon market regulations, and support governments, project developers, investors, and other market participants in navigating the evolving regulatory landscape.
State and Trends of Carbon Pricing Dashboard
Carbon Markets, Domestic Carbon Markets
The World Bank's Carbon Pricing Dashboard provides details about direct carbon pricing instruments and carbon markets around the world.
State and Trends of Carbon Pricing Report
Carbon Markets, Domestic Carbon Markets
This report focuses on the direct pricing of greenhouse gas emissions through carbon taxes, emissions trading systems, and carbon crediting mechanisms.
High Integrity, High Impact: The World Bank Engagement Roadmap for Carbon Markets
Carbon Markets, Domestic Carbon Markets
High-integrity carbon markets can be a win-win for people and the planet, potentially generating millions, if not billions, for countries on the pathway to low carbon development. While there are challenges, the potential of carbon markets needs to be tapped and fully utilized.
State and Trends of Carbon Pricing 2025
Carbon Markets, Domestic Carbon Markets