Visualized: Global CO₂ Emissions Through Time (1950-2022)

Global CO₂ emissions have grown six-fold since 1950.

But which countries have contributed the most to this growth?

In this streamgraph, created in partnership with the National Public Utilities Council, we answer that question using regional emissions data from Berkeley Earth and Global Carbon Project. 

Global CO₂ Emissions: The Last 70 Years in Review

In the 1950s, the United States and the countries that later formed the European Union (EU) were the biggest emitters in the world, responsible for over 70% of total annual emissions.

However, this trend swiftly changed as other nations entered the fray.

For instance, China’s economic surge in the 1970s, particularly with the advent of Deng Xiaoping’s new economic strategy in 1978, triggered a notable uptick in the country’s CO₂ output. From 1950 to 2000, China witnessed a surge of over 4,500% in emissions, reaching an annual 3.6 billion tonnes by 2000.

Similarly, India, Japan, and the broader Asian region, all experienced emission growth exceeding 1,000% between 1950 and 2000.

Data note: 1950 was used as a beginning point for the graph due to the lack of available data for many countries prior to that year. 

As illustrated in the table above, the growth in global carbon emissions has slowed since 2000.

With that said, global emissions have still risen from 25 billion tonnes in 2000 to 37 billion in 2022, yet another all-time high. Today, over 40% of emissions come from the United States and China, underscoring their pivotal roles in shaping the global emissions landscape.

Where Are We Headed From Here?

The United Nations’ recent Emissions Gap report highlights a concerning reality: the ongoing rate of emissions combined with existing policies steers humanity towards a world that is 3°C warmer than pre-industrial levels. This contrasts starkly with the goals of 1.5–2°C agreed to in 2015.

The Intergovernmental Panel on Climate Change projects that such a degree of warming will bring catastrophic repercussions, from severe changes in weather patterns to rising sea levels, widespread extinctions, and critical disruptions to global food and water systems.

This underscores the critical need for swift, concerted action to curb emissions and mitigate the impending environmental challenges that are potentially before us.

Visualized: Carbon Pricing Initiatives in North America

Carbon pricing mechanisms are a vital component of an effective emissions reduction strategy. But these initiatives currently cover just 15% of total North American carbon emissions.

To discover which initiatives are currently contributing to this coverage, this graphic sponsored by the National Public Utilities Council maps out all of the national and subnational carbon pricing initiatives across North America using data from the World Bank.

Let’s begin by looking at types of carbon pricing.

Carbon Pricing Explained

Carbon pricing is a market-based policy tool that assigns a cost to carbon emissions, incentivizing reductions through the use of economic signals.

While there are several ways to go about carbon pricing, the most commonly used types of carbon pricing strategies include:

• Emissions Trading Systems (ETS)
  ETS establishes a market for trading emissions allowances among companies. A cap on total emissions is set, and all companies receive tradable emission units. Those exceeding their limits can buy allowances from those with a surplus.
• Carbon Taxes
  Carbon taxes impose a direct price on carbon emissions. Their goal is to disincentivize carbon-intensive activities, such as burning fossil fuels, by making them financially less attractive.

In 2022, carbon pricing strategies generated $5 billion in the U.S. and $8 billion in Canada. These funds were primarily allocated toward green investments and support for low-income households.

Carbon Pricing Initiatives By Country

The U.S. is currently the only country in North America without a national carbon pricing initiative. Both Canada and Mexico, on the other hand, have implemented federal ETS and carbon tax programs.

Beyond federal initiatives, many regions on the continent have also implemented or are considering their own carbon pricing initiatives. These subnational initiatives are listed in the table below:

The RGGI was the first mandatory ETS initiative in the U.S. and applies to power plants in Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Virginia.

Since its inception, emissions in the RGGI region fell by more than 50%—twice as fast as the nation as a whole—and raised nearly $6 billion to invest in local communities.

Are All Carbon Pricing Initiatives Created Equal?

In the landscape of carbon pricing initiatives, one critical factor stands out—the price of carbon itself.

According to The High-Level Commission on Carbon Prices, achieving alignment between carbon pricing strategies and the Paris Agreement temperature target requires a price of US$40–80/tCO₂ by 2020 and US$50–100/tCO₂ by 2030.

Unfortunately, many North American initiatives fall short of these prices, especially in the U.S. and Mexico, where carbon prices reach as low as US$12/tCO₂e. Conversely, most Canadian initiatives set a price of US$48/tCO₂e.

It’s also important to note that the broader impact of these initiatives depends on a multitude of other factors, including the industries they cover, their flexibility in accommodating changing economic conditions, and the manner in which generated revenue is invested back into sustainable practices.

Within the balance of these various elements lies the potential to steer all industries—including the power sector—toward the necessary emissions reductions.