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Solutions
* The correct answer is '1 and 2'.
Other information:
* According to the World Bank’s annual “State and Trends of Carbon Pricing” report, revenues from carbon taxes and Emissions Trading Systems (ETS) have reached a record high, about $95 billion.
* This is despite the challenging context for governments facing high inflation, fiscal pressures, and energy crises.
* As per the report, the prices are still too low to drive the changes needed to meet Paris climate accord target.
* Several countries are using a price on carbon emissions to help meet their climate goals in the form of a tax, Emissions Trading System (ETS), or cap-and-trade system.
* There are currently 73 global carbon pricing instruments in operation covering around 23% of global greenhouse gas emissions.
* As of April 1, 2023 less than 5% of global greenhouse gas emissions are covered by a direct carbon price at or above the range recommended by 2030.