The global Carbon Verification Market is estimated to be valued at US$ 12.73 billion in 2023 and is expected to exhibit a CAGR of 26% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The carbon verification market involves verification and validation of emissions reductions from carbon offset projects. Carbon verification helps in ensuring the credibility and integrity of carbon credits through independent third-party validation and verification. It assesses whether a carbon offset project meets set standards and protocols in its design, implementation and monitoring plan to quantify actual GHG reductions. Carbon verification is an important element in voluntary carbon markets as it provides confidence for carbon credit buyers that the credits they purchase represent real, additional and verified carbon emission reductions or removals.
Market key trends:
One of the key drivers of carbon verification market growth is the increasing demand for carbon neutral products and carbon credits from organizations looking to achieve net-zero emissions targets. As corporate sustainability agendas emphasize on achieving carbon neutrality in operations and supply chains, the need for purchasing high-quality carbon offsets is rising. Another major trend is development of international carbon standards and frameworks. The adoption of frameworks like Paris Agreement and frameworks by organizations like International Carbon Reduction and Offset Alliance (ICROA) is setting high bars for carbon offset programs and driving greater adoption of third-party verification practices. Stringent regulatory policies targeting net-zero emissions are also prompting more companies to invest in carbon offsetting programs and verify emissions reductions through third parties.
Threat of new entrants: The threat of new entrants is moderate. The carbon verification market requires high initial investments and certifications which make entry difficult for new players.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers can choose from various verification services providers and opt for the most competitive prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of verification services have to rely on specialized technical expertise and resources which gives them an edge over buyers.
Threat of new substitutes: The threat of new substitutes is low. There are limited alternatives available for carbon verification services currently.
Competitive rivalry: The competitive rivalry is high due to presence of many global and regional players offering similar verification services.
The global Carbon Verification Market is expected to witness high growth, exhibiting CAGR of 26% over the forecast period, due to increasing compliance with carbon emission standards and regulations. The market size is estimated to reach US$ 12.73 billion by 2023.
Regional analysis: The US dominates the Carbon Verification Market currently owing to stringent regulations and compliance programs. Growth opportunities are also high in China and countries in Europe due to implementation of nationwide carbon pricing programs. Carbon verification is gaining traction across developing nations to lower carbon footprint.
Key players: Key players operating in the carbon verification market are DNV GL, SGS SA, Bureau Veritas, TÜV NORD GROUP, Intertek Group plc, Carbon Trust, First Environment, Inc., ERM Certification and Verification Services, NSF International, UL LLC, Cotecna, SCS Global Services, KPMG International Cooperative, Deloitte Touche Tohmatsu Limited, and PwC. These players are focusing on partnerships and collaborations to expand their global presence.
- Source: Coherent Market Insights, Public sources, Desk research
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