Global Carbon Verification Market is Estimated To Witness High Growth Owing To Increasing Focus on Reducing Carbon Emissions
Carbon Verification Market
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.
Market Overview:
Carbon verification refers to the process of independent third-party validation
of emission reduction projects or carbon credits generated by enterprises.
Carbon verification ensures the Credibility, Transparency, Accuracy, and
Integrity of carbon credits. With stringent government policies and regulations
governing carbon emissions across various industries, carbon verification is
playing a key role in enhancing organizations' sustainability credentials while
showcasing their efforts towards reducing carbon footprint.
Market key trends:
One of the major trends driving the growth of the carbon verification market is
increasing focus on Scope 3 emissions accounting and reporting. With growing
emphasis on measuring and managing Scope 3 emissions, which include all indirect
emissions that occur in a company's value chain, carbon verification is gaining
prominence. Assessment and verification of Scope 3 emissions helps companies
identify significant emission sources, engage suppliers to reduce emissions,
and integrate climate considerations into strategic planning. Several large
corporations have already announced targets to reduce Scope 3 emissions,
driving the need for robust carbon accounting practices and third-party
verification.
Porter's Analysis
Threat of new entrants: Low capital requirements and established buyers limit
threats. However, buyers prefer certified firms with scale and expertise.
Bargaining power of buyers: Buyers have significant power as they can select
from various certifiers. Buyers often collaborate to standardize requirements.
Bargaining power of suppliers: Suppliers have moderate power due to specialized
skills and technologies required for certification. However, demand from buyers
limits suppliers' power.
Threat of new substitutes: Threat is low as certification requires expertise
and is often mandatory for emissions reporting. Verification offers credibility
lacking in alternatives.
Competitive rivalry: Intense as firms compete on capabilities, expertise,
geographical reach and price. Scale and reputation differentiate large
certifiers from small players.
SWOT Analysis
Strengths: Strong technical skills and global networks. Reputation and scale
provide advantages in winning large clients.
Weaknesses: High compliance costs. Smaller players have narrower service
portfolios.
Opportunities: Growing carbon regulations worldwide. Emerging opportunities in
renewable energy, carbon offset verification.
Threats: Commoditization of basic services. Disruptions from new technologies
that reduce on-site audits.
Key Takeaways
The global Carbon Verification Market is expected
to witness high growth, exhibiting CAGR of 26% over the forecast period, due to
increasing carbon regulations worldwide. Stringency of regulations is driving
demand for third-party verification from large emitters.
The US and European markets currently dominate due to early adoption of carbon
targets. However, China and India are emerging as high potential markets,
supported by expanding emissions trading mechanisms. Southeast Asian nations
are also strengthening commitments to reductions.
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.
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