Carbon verification refers to the process of third-party verification of an entity's carbon footprint, carbon offset projects, or carbon credits. Services related to carbon verification ensure that the greenhouse gas emissions reported by organizations are true and accurate. It also verifies if carbon offset projects lead to actual emissions reductions. Carbon offsets are credits generated by emissions reduction projects that companies can purchase to compensate for their own emissions. Common carbon offset project types include renewable energy, energy efficiency, forestation and reforestation, and waste diversion.

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 26% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the key drivers for the growth of the Global Carbon Verification Market Size is the growing demand for carbon neutrality among organizations. Various companies have committed to achieving net-zero emissions targets over the next few decades, which is increasing the need for carbon accounting and verification services. For instance, over 1900 companies have committed to setting science-based emissions reduction targets through the Science Based Targets initiative. Further, carbon offset verification helps ensure that carbon credits used by companies to achieve carbon neutrality represent authentic and verified emissions reductions. Strict regulations around carbon reporting and the increasing adoption of internal carbon pricing by businesses are also fueling the need for carbon accounting and verification services.

SWOT Analysis

Strength: Carbon verification validates and verifies emission reductions and removals from mitigation projects. It assures stakeholders that the projects are real, additional, and have been accurately quantified. The process offers credibility and bankability for the carbon credits generated. Third-party verification builds trust that the carbon credits can be relied upon.

Weakness: The verification process involves intensive desk reviews and field visits which increases the overall cost of the projects. The complex methodologies and stringent criteria make the process relatively lengthy and resource intensive. Small scale projects may find the costs and effort of verification disproportionately high.

Opportunity: With growing emphasis on energy transition and decarbonization globally, the demand for high quality carbon credits is on the rise. Emerging voluntary carbon markets and initiatives like Article 6 offer new market avenues. The expansion of compliance carbon markets like EU ETS to more sectors will further boost opportunities.

Threats: Potential changes in carbon pricing or regulations pertaining to use of offsets can impact market demand. Emergence of alternative ways of accounting for emissions reductions like satellite monitoring brings technology threats. Delays in finalizing ISO 14064 and other relevant standards increase compliance uncertainties.

Key Takeaways

The global Carbon Verification market is expected to witness high growth over the forecast period supported by policies and actions targeting net zero goals. 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 26% over the forecast period 2023 to 2030.

The Asia Pacific region is likely to emerge as the fastest growing as well as the dominating regional market owing to the large scale initiatives in countries like China and India for emissions mitigation projects across sectors like renewable energy, waste management etc. Verification activities in these countries are expected to increase multifold.

Key players operating in the Carbon Verification market are DNV GL, SGS SA, Bureau Veritas, 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 companies have extensive experience and global presence enabling them to leverage growth opportunities both in compliance and voluntary markets. Strategic partnerships and acquisitions have enabled market leaders to strengthen their service offerings and geographical footprints.

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