Carbon Accounting Software Market: Green IT Adoption & Industry Expansion

According to IMARC Group's latest research publication, The global carbon accounting software market size was valued  at USD 22.2 Million  in 2025. Looking forward, IMARC Group estimates the market to reach  USD 98.1 Million  by 2034, exhibiting a CAGR of 18.0%  from 2026-2034.

How AI is Reshaping the Future of Carbon Accounting Software Market

• Automated Emissions Data Collection and Validation: AI-powered platforms extract activity data from unstructured documents like PDF invoices, reducing manual work by 80% while achieving 95% accuracy in emissions factor mapping and validation.
• Real-Time Supply Chain Emissions Tracking: Machine learning algorithms analyze vast datasets across global supply chains, identifying emission hotspots and enabling companies to achieve Scope 3 visibility with 85% less manual effort.
• Predictive Analytics for Decarbonization Planning: AI-driven carbon platforms leverage predictive models to forecast future emissions trajectories, enabling companies to run scenario analyses and identify reduction projects worth millions in energy efficiency opportunities.
• Intelligent GHG Protocol Compliance Automation: AI systems automatically align corporate data structures with reporting standards, ensuring consistency across regions while matching millions of activity data points with accurate emission factors in minutes.
• Optical Character Recognition for Data Digitization: OCR technology converts text from physical documents into machine-readable formats, accelerating data entry, minimizing errors, and streamlining carbon tracking across complex organizational structures.

Carbon Accounting Software Industry Overview:

The carbon accounting software sector is experiencing rapid transformation driven by mounting regulatory pressure and corporate sustainability commitments. The U.S. Securities and Exchange Commission's climate disclosure rules, adopted in March 2024, mandate public companies to report material Scope 1 and Scope 2 greenhouse gas emissions beginning with fiscal year 2025 for large accelerated filers. Over 90% of S&P 500 companies already disclose climate-related information in annual reports, with approximately 60% providing emissions data. The European Union's Corporate Sustainability Reporting Directive and California's climate legislation SB 253 further compel organizations to implement robust carbon tracking systems, creating unprecedented demand for automated solutions that ensure compliance while reducing operational costs and enabling strategic decarbonization initiatives.

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Carbon Accounting Software Market Trends & Drivers:

• The energy and utilities sector dominates carbon accounting software adoption due to its position as one of the largest greenhouse gas emitters globally. These companies face stringent regulatory mandates requiring precise emissions monitoring across complex operations spanning power generation to distribution networks. Global energy-related carbon dioxide emissions grew by 1.1% in 2023, according to the International Energy Agency, intensifying pressure on utilities to demonstrate measurable progress toward carbon reduction targets. Energy firms are deploying these platforms not just for regulatory compliance but to optimize operational efficiency, transition to renewable sources, and enhance reporting transparency to stakeholders. The sector's high emission volumes combined with evolving environmental standards make carbon accounting software essential infrastructure rather than optional technology, driving sustained investment in advanced tracking capabilities that provide real-time insights into emissions across entire value chains.
• Cloud-based deployment models are revolutionizing market accessibility and adoption patterns. These solutions captured approximately 72.4% of market share in 2025, offering organizations unprecedented flexibility, scalability, and remote access capabilities that eliminate substantial infrastructure investments. Cloud platforms enable real-time data updates, seamless integration with existing enterprise systems, and collaborative workflows across geographically dispersed teams—critical advantages for multinational corporations managing emissions reporting across multiple jurisdictions. Subscription-based pricing models lower entry barriers for small and medium-sized enterprises, democratizing access to sophisticated carbon management tools previously available only to large organizations. The proliferation of Internet of Things devices, expected to reach 18.8 billion by end of 2024, further enhances cloud platforms' value by enabling automated data capture from sensors and equipment throughout operations, reducing manual input requirements while improving data accuracy and timeliness for emissions calculations and compliance reporting.
• North America leads global carbon accounting software adoption, accounting for over 36.8% of market share in 2025, with the United States representing approximately 80% of regional demand. Government initiatives including tax incentives and federal emissions reduction targets actively encourage businesses to implement carbon tracking systems. Leading sectors including energy, technology, and automotive prioritize these tools to comply with strict reporting standards while gaining competitive advantages in sustainability-conscious markets. In November 2024, ISS-Corporate acquired SustainaBase, a Florida-based carbon accounting software provider, strengthening its comprehensive corporate sustainability solutions portfolio. Similarly, Workiva launched its Workiva Carbon platform in June 2024 after acquiring emissions reporting startup Sustain.Life, providing climate-risk reporting capabilities that gather data from multiple enterprise systems. These strategic moves reflect intensifying competition and consolidation as vendors race to offer end-to-end solutions that address evolving disclosure requirements across regulatory frameworks.

Leading Companies Operating in the Global Carbon Accounting Software Industry:

• BraveGen (Energy Solution Providers Limited)
• Carbon Analytics Limited
• CarbonetiX
• Carbonstop
• Emitwise
• Evalue8 Sustainability
• Intelex Technologies Inc. (Industrial Scientific Corporation)
• Net0
• Normative
• SAP SE
• Simble Solutions Ltd.
• Sphera Solutions Inc.

Carbon Accounting Software Market Report Segmentation:

By Deployment:

• Cloud-based
• On-premises

Cloud-based represents the largest segment, holding around 72.4% of the market as organizations prioritize flexibility, scalability, and cost-effective solutions that eliminate infrastructure investments.

By Industry:

• Energy and Utilities
• IT and Telecom
• Healthcare
• Transportation and Logistics
• Retail
• Construction and Infrastructure
• Food and Beverages
• Chemicals
• Others

Energy and utilities dominates the market due to significant carbon footprints, stringent regulatory requirements, and the critical need for precise emissions monitoring across complex operational networks.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America exhibits clear dominance in the carbon accounting software market, holding over 36.8% market share in 2025, driven by robust regulatory frameworks and corporate sustainability initiatives.

Recent News and Developments in Carbon Accounting Software Market:

• January 2025: Greenly, a carbon accounting software startup supported by Hewlett Packard Enterprise, launched Greenly Pro, a comprehensive suite of tools designed to empower partners including consultants and resellers to sell and support sustainability-focused software effectively across diverse client organizations.
• October 2025: Greenly announced the launch of its AI-powered carbon accounting platform EcoPilot, which automates data collection, structuring, and emissions-factor assignment, enabling companies to model Scope 3 reductions and run scenario analyses for net-zero pathways with unprecedented efficiency.
• October 2024: Institutional Shareholder Services (ISS) announced the acquisition of SustainaBase, a Florida-based provider of carbon accounting and data management software solutions for corporate sustainability reporting, through its governance and sustainability division ISS-Corporate, strengthening its comprehensive solutions portfolio.
• June 2024: Workiva introduced a carbon solutions platform designed to assist clients in meeting the growing demand for climate-risk reporting and global disclosure regulations. The company simultaneously announced the acquisition of Sustain.Life, a startup specializing in carbon accounting and emissions reporting.
• May 2024: Climatech carbon accounting company Notch unveiled its next-generation software platform, designed to help businesses of all sizes and sectors not only achieve Net Zero but also turn it into a commercially advantageous opportunity through comprehensive carbon reduction strategies.

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