by The carbon verification market plays a critical role in verifying that carbon reduction claims are valid, credible and verifiable. Carbon verification is a third-party assurance or certification that carbon-related assertions such as emission reductions from a project are credible and conform to various standards and guidelines. This helps organizations reliably measure and monitor their carbon footprint, create reports on greenhouse gas emissions, validate their climate actions and achieve their carbon neutrality targets. Carbon verification supports a variety of programs including internal carbon pricing programs, carbon offsetting programs, emissions trading schemes and sustainability reporting. With more and more companies and countries committing to carbon neutrality goals through programs like REACH, EU ETS and Paris Agreement, the demand for carbon verification services is surging to ensure transparency and accountability in emission reductions.
The global Carbon Verification Market is estimated to be valued at US$ 12.73 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
A key market trend in the carbon verification market is the increasing integration of blockchain and digital technologies. The use of cutting-edge technologies in carbon accounting helps improve traceability of carbon credits, minimize risks of double counting and build trust in carbon markets. Another significant trend is the growing number of carbon offset standards and protocols. As more standards emerge to support new mitigation approaches and sectors, it gets more complex for companies to navigate the standards landscape and choose the appropriate protocol. This drives opportunities for carbon verification organizations to offer guidance and advice on standards selection. Accreditation and assuring credibility of carbon verifiers is also gaining prominence with regulations and initiatives like ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) which designates accreditation bodies and prescribes eligibility criteria for verifiers.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants in the carbon verification market is moderate as it requires technical expertise and resources to cater to strict quality and testing standards.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many carbon verification service providers globally providing a multitude of options for buyers to choose from.
Bargaining power of suppliers: The bargaining power of suppliers is low in the carbon verification market as suppliers include carbon credit originators and natural resources that suppliers have limited control over.
Threat of new substitutes: The threat of substitutes is low as there are no close substitutes for carbon verification services which help companies achieve sustainability targets and address climate change initiatives.
Competitive rivalry: The competitive rivalry in the carbon verification market is high owing to the presence of numerous national and international players providing similar services and competing based on quality, pricing and innovation.
Key Takeaways:
The Global Carbon Verification Market Size is expected to witness high growth over the forecast period. The global Carbon Verification Market is estimated to be valued at US$ 12.73 Bn in 2024 and is expected to exhibit a CAGR of 10 % over the forecast period 2024 to 2031.
Regional analysis: Europe region currently dominates the carbon verification market owing to stringent environmental regulations and a well-established carbon trading system. The Asia Pacific region is expected to grow at the fastest pace during the forecast period led by emerging economies like China and India supporting low carbon initiatives.
Key players: Key players operating in the carbon verification market are SGS SA, Bureau Veritas, Carbon Clear, Intertek Group plc, DNV GL, Environmental Resources Management Limited and Verif0. Cemex recently partnered with SGS to verify carbon footprint reductions across its global concrete facilities. Verif0 acquired CarbonChain to expand their service offerings with blockchain technology.
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