May 29, 2024
Ict

The Carbon Verification Market Is Driven By Increasing Carbon Reduction Targets

The carbon verification market involves services that help validate and verify organizations’ carbon footprints and offset claims. Carbon footprints are assessments of the amount of carbon dioxide or equivalent greenhouse gases emitted through business operations and activities. They have become increasingly important for companies aiming to measure, understand, and reduce their carbon emissions in line with environmental, social, and governance targets. Verification services help ensure that companies’ self-reported emissions data and carbon offsets meet recognized standards and protocols.

The global carbon verification market is estimated to be valued at US$ 14.67 Billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Regulations around the world have ramped up requirements for companies to disclose scopes 1, 2, and 3 emissions and set carbon reduction targets. For example, the European Union has introduced its Sustainable Finance Disclosure Regulation and enacted legally binding climate neutrality targets by 2050. In response to such policies and pressures from investors, more firms are focusing efforts on measuring their carbon footprints precisely and taking credible actions to cut emissions. This increasing prioritization of decarbonization strategies is driving greater demand for professional carbon accounting and independent verification services.

Market key trends:
One of the key trends in the carbon verification market is the integration of digital technologies. Service providers are enhancing their solutions with tools like AI, IoT, blockchain, and satellite imagery to enable more automated, continuous emissions monitoring. This allows for near real-time data collection and reporting versus traditional periodic verification cycles. Digital verification streamlines processes, reduces costs, and supports more responsiveness to emissions fluctuations. Blockchain is also seeing growing incorporation to build transparency and trust in carbon credits and offsets trading systems. As decarbonization becomes core to business strategies, advanced digital verification will be critical to validate progress at the needed scale and pace.

Porter’s Analysis
Threat of new entrants: The carbon verification market requires high initial costs for infrastructure development and certification which acts as a barrier for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power as they can choose between various service providers providing carbon verification services.
Bargaining power of suppliers: Suppliers have low bargaining power due to the presence of several options for providing carbon offset credits and certification services.
Threat of new substitutes: There are no close substitutes for carbon verification services at present.
Competitive rivalry: The carbon verification market is competitive with the presence of global as well as regional players.

Key Takeaways
The Global Carbon Verification Market Growth is expected to witness high.

Regional analysis: Asia Pacific region is expected to be the fastest growing market for carbon verification services. Countries like China, India and Japan are focusing on reducing their carbon footprint which will drive the demand.

Key players operating in the carbon verification market are Audi AG Aktiengesellschaft, Lotus Cars Limited, Aston Martin Lagonda Global Holdings PLC, Koenigsegg Automotive AB, Bentley Motors Limited, Automobili Lamborghini S.p.A., McLaren Group, Bayerische Motoren Werke AG, h.c. F. Porsche AG, Pagani Automobili S.p.A., Ferrari N.V., Bugatti Automobiles S.A.S. Major players are focusing on developing advanced technologies for accurate carbon verification and establishing partnerships with offset credit providers.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it