Carbon verification refers to the process of verification and validation of the reduction in greenhouse gas (GHG) emissions claimed by an organization. It involves quantification, monitoring, reporting, and verification of GHG emissions over a period of time. Carbon verification helps companies in streamlining their operations, improving cost-effectiveness, and meeting regulatory and voluntary emission reduction targets. It enables businesses to procure carbon credits by demonstrating the reduction achieved through their climate actions. Key application sectors include manufacturing, oil & gas, utilities, transportation, mining, and chemicals industries.
The global carbon verification market size is estimated to be valued at US$12.73 billion in 2023 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 Dynamics:
Growing concerns towards reducing carbon footprint is one of the major drivers boosting the growth of the carbon verification market. Regulatory bodies across regions are imposing stringent carbon emission regulations on industries to curb environmental pollution. This is encouraging companies to adopt carbon verification practices and achieve their emission reduction targets. For instance, the European Union has mandated its member countries to achieve at least 40% reduction in GHG emissions by 2030 compared to the 1990 levels. Similarly, countries like US, China, and India have introduced policies and initiatives to drive low carbon growth. Carbon verification enables industries to meet these regulatory compliances and gain a competitive edge in the market. Along with this, growing adoption of internal carbon pricing initiatives by companies is also fueling the demand for carbon verification services globally.
Segment Analysis
The carbon verification market is dominated by the energy & utilities segment which holds around 35% of the total market share. Energy and utilities is the dominating segment as carbon verification solutions help energy companies to track and report GHG emissions from power generation facilities and ensure compliance with greenhouse gas regulations.
PEST Analysis
Political: Carbon pricing policies and cap and trade programs by governments are driving the adoption of carbon verification solutions. stringent environmental regulations regarding carbon emission reporting and monitoring are being implemented.
Economic: Cost of non-compliance of carbon regulations and ability to benefit from carbon credits by monetizing emission reductions is boosting investments in carbon verification.
Social: Increasing consumer and societal pressure on organizations to reduce their carbon footprint and commit to science-based emission targets is favoring the growth of the carbon verification market.
Technological: Adoption of technologies like IoT, AI and blockchain for enhancing carbon accounting, ensuring data integrity and automating verification processes is amplifying the capabilities of carbon verification vendors.
Key Takeaways
The Global Carbon Verification Market Demand size is projected to reach US$ 22.29 Bn by 2030 from US$ 12.73 Bn in 2024, expanding at a CAGR of 10% during the forecast period.
Europe dominates the global carbon verification market, both in terms of value and volume, owing to stringent environmental policies for carbon emission monitoring and reporting in countries like Germany, U.K. and France.
Key players comprising Key players Audi AG Aktiengesellschaft and Lotus are amongst the prominent players in the carbon verification market. Audi AG specializes in providing carbon accounting solutions for automotive industry while Lotus focuses on carbon offsetting and renewable energy credits for organizations.
For more details on the report, Read- https://www.pressreleasebulletin.com/carbon-verification-market-growth-market-size-share-analysis/
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