Carbon Accounting Platform Market - Forecasts from 2023 to 2028

The carbon accounting platform market is estimated to grow at a CAGR of 29.72% during the forecast period.

Carbon accounting is the process of measuring and reporting the amount of carbon dioxide or equivalent greenhouse gas (GHG) emissions produced by an organization or activity. It is a crucial tool for businesses, governments, and other organizations to track their environmental impact and identify opportunities for reducing their carbon footprint. The process of carbon accounting involves gathering data on the various sources of GHG emissions, such as energy use, transportation, and manufacturing processes, and calculating the total emissions for a given time period. The emissions are typically measured in units of carbon dioxide equivalents (CO2e), which take into account the varying global warming potential of different greenhouse gases. Carbon accounting is increasingly important in the context of climate change, as businesses and governments face pressure to reduce their greenhouse gas emissions in order to limit global warming. Carbon accounting helps to provide transparency and accountability in this process, allowing organizations to track their progress towards carbon reduction goals and report on their performance to stakeholders.

The Carbon accounting platform market is driven by growing demand for reporting services and strict government policies and regulations as well as incentives.

With the increasing pressure on organizations to reduce their carbon footprint, there has been a growing demand for carbon accounting and reporting services. Many businesses and governments are seeking to identify and quantify their carbon emissions and take steps to reduce them. Carbon accounting companies offer a range of services, from carbon footprint assessment to carbon offsetting, which enable organizations to measure, manage and mitigate their emissions. Governments around the world are introducing policies and regulations to reduce greenhouse gas emissions. For example, the Paris Agreement requires signatory countries to reduce their carbon emissions to limit global warming. The introduction of such policies and regulations has increased the demand for carbon accounting services as organizations seek to comply with these requirements. In addition, carbon pricing schemes such as carbon taxes or cap-and-trade systems have also increased demand for carbon accounting services. According to the World Bank, as of 2021, over 60 carbon pricing initiatives have been implemented or scheduled, covering about 22% of global GHG emissions. These schemes include carbon taxes and cap-and-trade systems, which are designed to incentivize businesses and individuals to reduce their carbon footprint. The implementation of these policies and regulations has increased demand for carbon accounting services as organizations seek to comply with these requirements.

Further, in October 2022, SAP SE launched a virtual startup initiative called "Carbon Accounting" at its SAP.iO Foundry Tel Aviv to support customers in improving their sustainability practices. The program aims to use advanced technology and innovation to reach sustainability goals. Six global startups have been chosen to participate and form alliances with SAP and other top companies. During the program, the startups received guidance from SAP executives, exposure to SAP technology and APIs, and opportunities to collaborate with SAP customers worldwide. The startups worked with SAP on integration and partnership to deliver solutions that enable companies to assess, manage, and report their ESG impacts, track and minimize their carbon emissions, and automate carbon accounting, data collection, and reporting.

Based on solution, the Carbon accounting platform market is expected to witness positive growth in services segment.

The Carbon accounting platform market is categorized based on solution. Carbon accounting services involve the measurement and reporting of greenhouse gas emissions, along with providing strategic advice on how to reduce carbon footprint and achieve sustainability goals. Service providers offer a range of carbon accounting services, such as data collection, carbon footprint calculation, supply chain analysis, emissions reduction strategies, and sustainability reporting. The market for carbon accounting services is expected to grow as more businesses aim to become carbon-neutral or net-zero by reducing their emissions and improving their sustainability practices.

North America accounted for a significant share of the global Carbon accounting platform market.

Based on geography, the Carbon accounting platform market is segmented into North America, South America, Europe, the Middle East and Africa and Asia Pacific. North America has been a leading region in the Carbon accounting platform market. This can be attributed to the presence of large carbon-intensive industries and the early adoption of sustainability initiatives. Additionally, the US has been one of the biggest contributors to global greenhouse gas emissions. The government's focus on reducing carbon emissions and the increasing awareness of environmental sustainability among businesses has also fueled the demand for carbon accounting solutions in the region.

Key developments.

• In March 2023,Edenseven, a management consulting firm based in Cambridge, introduced a carbon accounting platform known as cero.earth. The in-house developed platform offers comprehensive insights and actionable solutions for a company's entire operations and supply chain, focusing on Scope 3 emissions. According to the company, off-the-shelf carbon accounting solutions typically do not provide detailed reporting on Scope 3 emissions, which account for 70-80% of a company's total carbon footprint. cero.earth offers telecommunications firms a range of tools and strategies for evaluating, managing, and reducing emissions associated with their overall operations, including data centers, fixed and wireless networks, and fiber optic systems.
• In july 2022,Normative AB, a startup based in Sweden, secured $31 million in a Series B funding round to expand its carbon accounting platform. The funding was led by Blume Equity and included several new as well as past investors. Normative’s platform offers a more precise method of measuring businesses’ entire climate footprint, including supply chains, to assist them in achieving net zero emissions. 

Key Market Segments

By SOLUTION

• Software
• On-Premise
• Cloud-based
• Services

By INDUSTRY VERTICAL

• Transport
• Chemicals
• Food & Beverage
• Energy & Power
• IT & Telecom
• Others

By GEOGRAPHY

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East And Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others