Climate change consulting refers to strategic consulting services offered to commercial, industrial and government clients to help them understand, address and mitigate climate-related risks and opportunities. Consulting services include assessments of physical risks of climate change such as extreme weather events, transitional risks including regulatory changes related to carbon emissions and investments in low-carbon technologies, scenario analysis of 2-degree and well-below 2-degree pathways, development of science-based targets and net-zero strategies. The global climate change consulting Market is estimated to be valued at US$ 6.82 Bn in 2023 and is expected to exhibit a CAGR of 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increasing Demand for Risk and Impact Analysis of Climate Change: Climate change poses both physical and transitional risks to businesses, industries and economies. There is growing need among organizations to understand how climate change may impact their business operations, supply chains and financial planning over short, medium and long term. Consulting services help assess risks through scenario modeling and adaptation strategies through GHG footprint analysis and decarbonization roadmaps. This is a key driver augmenting demand for climate change consulting services globally.

The growth in consulting services is also driven by supportive government policies and regulations around climate change. Many countries have committed to achieve carbon neutrality by mid-century and have instituted policies like carbon pricing, renewable portfolio standards and coal phase outs to reduce GHG emissions. Organizations require technical expertise to navigate the evolving compliance landscape and access low carbon funding opportunities. This necessitates climate change strategy development and policy advisory services, thereby driving market growth.

Segment Analysis 

The climate change consulting market is segmented into mitigation & adaptation, proposed carbon prices, impact & risk assessment, and others. The mitigation & adaptation segment dominates the market and is expected to continue its dominance over the forecast period. This is because mitigation and adaptation services help assess risks associated with climate change and devise strategies to address its impacts, thereby gaining widespread adoption across industries globally.

PEST Analysis 

Political: Climate change policies and regulations favoring emission reduction across countries are driving demand. The Paris Agreement and efforts by governments worldwide to transition to low-carbon economies through carbon pricing and renewable energy targets provide opportunities.

Economic: Transitioning to more sustainable practices requires huge investments from industries. Consulting services help identify cost-effective solutions, driving market growth. Increasing financial damages due to extreme weather events also boost spending on climate risk and adaptation consulting.

Social: Rising awareness about environmental issues and carbon footprint is encouraging organizations to cut emissions and future-proof operations from climate change risks through consulting. Demand is also driven by public and stakeholder pressure on corporations to address sustainability.
Technological: Advancements in climate modeling, remote sensing, and Big Data analytics help provide actionable insights. It allows assessing physical and transition risks more accurately to develop mitigation or adaptation strategies tailored to specific regional or sectoral needs.

Key Takeaways

The global Climate Change Consulting Market Growth is expected to witness high growth over the forecast period. The Asia Pacific region is expected to be the fastest growing regional market for climate change consulting. This is attributed to strong government support through climate change policies and initiatives in major countries like China and India. China leads through its focus on renewable energy development and emissions reduction targets as part of its commitment under the Paris Agreement. India also aims to meet 40% of its energy requirements through non-fossil fuel sources by 2030, thereby driving opportunities for consulting services on transition pathways.

Key players operating in the climate change consulting market are Cato Manufacturing Ltd, Culver Props, Inc., Delta Electronics, Inc., Dowty Circuits Limited, Hartzell Propeller, Inc., McCauley Propeller Systems, Inc., and Sensenich Propeller Service, Inc. Key players are focusing on expanding their service portfolios with new consulting offerings for adaptation and carbon pricing assessment. They are also investing in technologies to enhance climate modeling capabilities and strengthen regional presence in fast-growing Asian markets through partnerships and acquisitions. For instance, in 2022 McCauley Propeller Systems, Inc. acquired Europe-based climate advisory firm Rhine Consulting to expand its climate risk assessment services globally.

The global climate change consulting market size for 2024 is estimated to be US$ 6.82 Bn. Rapid industrialization and ongoing climate change impacts have increased the demand for strategic consulting across industry verticals to transition to low-carbon operations. Consulting helps understand emerging regulations, assess vulnerabilities, and identify business opportunities arising from climate change. It assists organizations in developing evidence-based strategies to strengthen resilience and gain a competitive edge in transitioning to environment-friendly practices.

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