Global Carbon Verification Market is Estimated To Witness High Growth Owing To Increasing Focus on Reducing Carbon Emissions

Carbon Verification Market
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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