Carbon verification refers to the third-party validation and verification of carbon credits that are generated due to reduction, avoidance or sequestration of greenhouse gases. Carbon credits are tradable certificates that represent the reduction or removal of one tonne of carbon dioxide or its equivalent. The increasing needs for verifying the authenticity and credibility of carbon credits has boosted the demand for carbon verification services. Carbon verification ensures the environmental integrity, transparency and consistency of carbon markets.
The global Carbon Verification Market is estimated to be valued at US$ 12.73 Bn 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 Opportunity:
Increasing Demand for Third-Party Validation of Carbon Credits
Carbon verification through independent third parties has become an integral part of all compliance carbon markets as well as voluntary carbon markets. With increasing carbon trading globally, the demand for high-quality carbon credits validated and verified by accredited verifiers is also on the rise. As more and more organizations aim to achieve carbon neutrality through the purchase of carbon offsets, the need for proper verification of the offsets’ environmental integrity becomes highly important. The growing importance of carbon verification is expected to open new growth opportunities for players in the carbon verification market during the forecast period.
Porter's Analysis
Threat of new entrants: New entrants face high initial costs for setting up operations and gaining market recognition. There are also stringent government regulations for carbon verification to ensure accuracy and reliability.
Bargaining power of buyers: Buyers have moderate bargaining power as they can choose from various carbon verification service providers. However, switching costs are high if buyers change providers mid-project.
Bargaining power of suppliers: Carbon verification technology providers have low bargaining power as there are many such suppliers. Service providers can choose from various verification software and tools suppliers.
Threat of new substitutes: There are low threats of substitutes as carbon verification is mandated under climate legislation and for companies pursuing carbon neutrality targets and credits.
Competitive rivalry: The market is highly competitive with the presence of global players providing specialized services. Service providers compete based on technology expertise, regional presence, and quality of verification.
SWOT Analysis
Strengths: Growing carbon regulations and commitments to reduce emissions are driving demand for carbon verification. Verification ensures legitimacy of carbon credits and climate claims.
Weaknesses: Carbon accounting and verification methods have scope for subjectivity and errors.High costs involved especially for smaller projects and organizations.
Opportunities: Emerging carbon markets in developing nations present new opportunities. Adoption of blockchain and AI based tools can enhance verification process.
Threats: Changes in climate policies and carbon credit rules pose risks. Delays in large projects can impact revenues of service providers. Trade tensions among nations affect carbon credit financing.
Key Takeaways
The Global Carbon Verification Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market size for 2024 is projected to reach US$ 12.73 Bn growing at a CAGR of 10%.
Regional analysis - Asia Pacific region dominates the carbon verification market currently owing to the presence of large emitters like China, India and growing carbon trading in nations like South Korea, Japan. China is the largest carbon market globally and is expected to remain the fastest growing regional market in the coming years supported by strong climate targets.
Key players - Key players operating in the carbon verification market are Intertek, DNV GL, Bureau Veritas, SGS SA, Exova, Environmental Resources Management, Verifavia, Carbon Certification, LDL International, and Carbon Check. The market is dominated by global verification firms with in-depth expertise and diverse regional presence.
Get More Insights Here
https://www.trendingwebwire.com/carbon-verification-market-size-share-growth-outlook-2023/
https://wotpost.com/in-sync-with-life-exploring-the-promise-of-modern-cardiac-assist-advancements/
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