
Compliance carbon markets
Our services support organisations in adopting robust verification practices, meeting regulatory requirements, and enhancing credibility in emission reporting.What is compliance carbon market?
Companies operating in sectors like energy, manufacturing, and heavy industry must comply with regulations such as the EU ETS, China's National ETS, U.S. state-level cap-and-trade programs (e.g., California and RGGI), and carbon tax policies in Canada, Singapore, and Sweden. Additionally, the EU’s CBAM applies carbon costs to imports, ensuring fair competition between domestic and foreign producers.
Beyond emissions pricing, governments enforce mandatory climate disclosures, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), the U.S. SEC’s climate risk reporting rules, and Australia’s financial disclosure mandates. These regulations promote corporate accountability, emission reductions, and global climate action, shaping how businesses operate in carbon-intensive industries.
Why validation and verification are essential for the compliance carbon market
Validation is required at the project planning stage to assess whether an emissions reduction project meets regulatory standards and has the potential to achieve its claimed reductions. Verification, conducted periodically, ensures that reported emissions and reductions are accurate and aligned with frameworks such as the EU ETS, California Cap-and-Trade, China’s National ETS, and CBAM regulations.
Regulatory bodies like the European Commission, UNFCCC, and national accreditation agencies mandate independent validation and verification to maintain market integrity, prevent fraud, and enhance investor and stakeholder confidence.
Governments worldwide are introducing stricter emissions reduction targets and carbon pricing mechanisms. This includes carbon taxes, cap-and-trade systems, and national emission reduction goals (e.g., EU Emissions Trading System, California Cap-and-Trade, and carbon taxes in Canada and China). These regulations are pushing businesses to adopt GHG verification practices to comply with emission reporting requirements.
International climate agreements, such as the Paris Agreement, require countries to commit to specific GHG reduction targets. This creates demand for accurate GHG data from businesses and organisations. Regulations in multiple jurisdictions particularly impact multinational companies, fuelling their demand for consistent verification services across borders.
While CBAM poses challenges in terms of data collection and verification, it also offers significant opportunities for businesses to enhance their environmental performance and engage in global emissions reduction efforts.
The challenges of compliance carbon market
Differences in national regulations
Reporting deadlines and frequency
Inconsistent data across departments or regions
Incomplete or inaccurate reporting
Lack of standardisation
Manual data entry and errors
Public scrutiny and trust
Auditability and verification of data
Misalignment with corporate claims
Lack of internal capabilities
Measurement of emission reductions
Dynamic nature of emissions
Penalties for misreporting
Market access and trade barriers
Data integration
Advanced analytics and tools
Carbon pricing volatility
How TÜV SÜD can help you with compliance carbon market validation & verification
TÜV SÜD is the one of the largest verification bodies globally.
TÜV SÜD provides independent validation and verification services to ensure compliance with global carbon market regulations, helping organizations meet mandatory emissions reporting requirements with accuracy and credibility. Our services enhance data integrity, regulatory compliance, and risk mitigation, ensuring businesses operate within legally binding frameworks such as EU ETS, CBAM, carbon taxation, and mandatory climate disclosure regulations.
As a globally recognised and accredited verification body, TÜV SÜD holds ISO 14065 accreditation and other GHG Standard under various national accreditation bodies, including:
- EU ETS accreditation
- DAkkS (Germany)
- ACCREDIA (Italy)
- NABCB (India)
- CNAS (China)
- SINGLAS (Singapore) and
- Czech Republic, Austria, Taiwan, Indonesia, and other national bodies
With this extensive accreditation network, TÜV SÜD ensures compliance with ISO 14064, ISO 14067, and other regulatory standards, offering trustworthy, globally accepted validation and verification services to support businesses in carbon footprint assessments, emissions reporting, and market participation across multiple jurisdictions.Compliance with recognised standards increases the ecologic integrity of your carbon footprint. This improves the credibility, consistency, and transparency of the quantification, monitoring, and reporting of your GHG. Our verification process follows the ISO 14064-3 standard, assuring you of a professional and reliable revision of your GHG reporting.
What our compliance carbon market services include
TÜV SÜD offers verification services for the following:
Emission trading schemes
- ETS EU Emission Trading Schemes (ETS).
- USA National Emissions Registry (RENE).
Upstream Emission Reductions (UER)
CBAM
- Critical review and gap assessment.
- Preliminary CBAM verification.
- CBAM verification.
- CBAM training and workshops.
Regulatory Compliance
- Fluorinated gases (F-gases).
- Innovation Fund.
Carbon taxation verification