Carbon verification plays a crucial role in determining organization’s carbon footprint and helps mitigate climate change. It involves third-party verification of carbon footprint to moniter greenhouse gas emissions from direct and indirect sources associated with an organization’s operations and value chain. This provides credibility and transparency in organizations’ carbon reduction efforts.
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 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Digitalization adoption has been one of the major trends shaping the carbon verification market. Use of internet of things (IoT) sensors, big data analytics and cloud computing is making carbon verification process more efficient by automating data collection, analysis and reporting. This is reducing time and cost of the process as well as minimizing human errors. For example, use of IoT sensors attached to assets and machines in supply chain is enabling remote monitoring of emissions in real-time. Digital tools are also making carbon offset projects monitoring and impact assessment more accurate and transparent. Thus, continued digitization is expected to accelerate market growth over the forecast period.
The global carbon verification market is dominated by the compliance segment. Carbon compliance refers to regulations and rulemaking around emissions caps, reductions, and related impacts of climate change policies. The compliance segment enforces mandatory carbon reporting for businesses and organizations. Businesses and organizations need to purchase carbon credits or offsets to meet their regulatory emission reduction obligations. This makes the compliance segment the largest within the carbon verification market.
The Global Carbon Verification Market Demand is expected to witness high growth over the forecast period of 2023 to 2030. 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 2023 to 2030.
The Asia Pacific region currently holds largest share of over 35% in the global carbon verification market. Rapid industrialization and urbanization have led to increased carbon emissions from countries like China and India. Stringent regulations in the region mandate industries to estimate, report and reduce their carbon footprint. Large manufacturing sectors and power generation industries rely on carbon credits to meet compliance targets, driving demand in the Asia Pacific carbon verification market. The region is expected to remain the fastest growing as well due to continued policy support for low carbon growth.
Key players operating in the carbon verification market are Audi AG Aktiengesellschaft and Lotus. Audi AG Aktiengesellschaft is one of the leading automobile manufacturers and actively invests in offsetting emissions from its operations. Lotus is a pioneer in electric vehicles and relies on carbon credits to demonstrate its commitment to sustainability.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it