PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485834
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485834
Carbon Verification Market size was valued at USD 11,999.10 million in 2023, expanding at a CAGR of 25.5% from 2024 to 2032.
Carbon verification typically refers to the process of assessing and confirming the amount of carbon emissions reduced, avoided, or sequestered by a particular project or activity. This process is essential for ensuring the credibility and integrity of carbon offset projects, which aim to mitigate climate change by reducing greenhouse gas emissions. Government policies and regulations can significantly influence the growth of carbon markets. The implementation of carbon pricing mechanisms such as cap-and-trade systems or carbon taxes can stimulate market demand for carbon credits. Many companies are increasingly adopting carbon reduction targets as part of their sustainability strategies.
Carbon Verification Market- Market Dynamics
Rising Awareness Of Climate Change & Need to Reduce Greenhouse Gas Emissions
Rising awareness of climate change and the imperative to reduce greenhouse gas emissions is one of the defining challenges. People are increasingly recognizing the severe impacts of climate change, from extreme weather events to rising sea levels, biodiversity loss, and threats to food and water security. According to Verra, the world's leading standards for climate action, there were more than 1,500 accredited VCS projects as of 2020. Verra provided offset credits of 300 MtCO2e for 110 projects in 2021. Moreover, the most popular greenhouse gas (GHG) crediting program in the world is the Verified Carbon Standard (VCS) Programme. More than a billion tonnes of carbon and other GHG emissions have been lowered or eliminated from the environment because of VCS programs. A vital and always-changing part of the continuous endeavor to safeguard our common environment is the VCS Programme.
Carbon Verification Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 25.5% over the forecast period (2024-2032)
Based on product type segmentation, chemical analysis was predicted to show maximum market share in the year 2023
Based on end user segmentation, energy was the leading type in 2023
Based on region, Europe was the leading revenue generator in 2023
The Global Carbon Verification Market is segmented based on Product Type, Organization Size, End User, and Region.
The market is divided into three categories based on product type: Chemical analysis, optical analysis, and Others. Depending on the type, the chemical analysis market is seeing dynamic business trends influenced by shifting sustainability objectives, market demands, and regulatory changes. Carbon credits are necessary for businesses to comply with the increasingly strict emissions reduction standards set by governments and regulatory organizations. Due to both required compliance requirements and voluntary commitments, the industry is seeing a spike in demand as more businesses commit to becoming carbon neutral.
The market is divided into six categories based on end-user: Energy, Transportation, Residential & Commercial Buildings, Industrial, Agricultural, and Water & Wastewater. The end-user segment with the most market share is forestry and land use. Reforestation and reforestation initiatives have become important players in the carbon credit market, leading to a significant shift in the approaches to mitigating climate change. These programmes are becoming more and more well-known for their ability to effectively store carbon while also promoting the preservation of biodiversity and the restoration of ecosystems.
Carbon Verification Market- Geographical Insights
Europe has created a strong regulatory framework, which includes the European Union Emissions Trading System (EU ETS) and has been a leader in the carbon market. Due to the voluntary market, regulatory compliance, and obligatory emission reduction targets, there has been a significant increase in demand for carbon verification services in the region. As a result of the EU's strong climate change response, EU emissions fell by more than 31% in 2022 when compared to 1990 levels. This is mostly due to a rise in the use of renewable energy sources and a decline in the usage of fossil fuels with high carbon content. Achieving these objectives was also made possible by advancements in energy efficiency and structural adjustments in the economy.
Large consulting firms like Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG offer carbon verification services as part of their broader sustainability and environmental consulting practices. Major players in the carbon verification market include DNV GL, SGS SA, TUV NORD GROUP, PwC, UL LLC, Deloitte Touche Tohmatsu Limited, etc. Moreover, government agencies and regulatory bodies in various countries may also offer carbon verification services or oversee verification processes to ensure compliance with carbon regulations and reporting requirements. In October 2023, ABB and Imperial College extended carbon capture collaboration to support future workforce and energy transition.
In February 2024, The U.S. Department of Energy (DOE) collaborated with the National Renewable Energy Laboratory (NREL) to support a new $15 million research effort to improve the measurement, reporting, and verification (MRV) of carbon dioxide (CO2) removal technologies.
In May 2023, ABU DHABI, UAE and GENEVA, ACX Ltd, the UAE-based global exchange revolutionizing the voluntary carbon market, and Carbon Offset Certification (COC), collaborated to support the commodity industry on its journey to carbon neutrality.
GLOBAL CARBON VERIFICATION MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
DNV GL
SGS SA
Bureau Veritas
TUV NORD GROUP
Intertek Group plc
Carbon Trust
First Environment, Inc.
PwC
NSF International
UL LLC
COTECNA
SCS Global Services
KPMG International Cooperative
Deloitte Touche Tohmatsu Limited
Others