Already a global leader in renewable energy, South Australia is now poised to transform the net zero efforts of businesses and countries into an economic benefit by enabling the accurate accounting of emissions, supporting businesses across the region to better account for their progress to net zero.
Announced off the back of the United Nations Climate Change Conference, COP27 in Egypt, the Indo-Pacific Carbon Accounting Lab will build the next-generation data infrastructure and carbon accounting systems, creating trusted and accurate data across entire supply chains.
The Lab will enable companies that have made commitments to net zero to be better able to track changes over time, resulting in more accurate and reliable sustainability reporting, helping to reduce the cost of capital for businesses that can demonstrate their credentials.
The Department for Trade and Investment aims to link government agencies with commercial and research partners so that the Indo-Pacific Carbon Accounting Lab can develop ESG solutions in South Australia for global export while contributing to the state’s net-zero ambitions.
As global companies look to meet their climate change targets, there is an increasing spotlight on carbon impacts through supply chains. For global companies purchasing component inputs for their products and services across international boundaries, this can make the task of gathering accurate and meaningful carbon data (scope 3 emissions) that underpins business decisions, very complex.
In the first phase, the South Australian Government is working alongside three partners to explore the opportunity to work collaboratively on pilot projects in industries in which South Australia has a global competitive advantage, including food and wine, minerals and energy, tourism and defence. These projects will aim to develop and deploy the systems that will underpin the next generation of carbon accounting products and services.
The Indo-Pacific Carbon Accounting Lab is inviting companies and research organisations along these supply chains to explore innovative approaches to solve supply chain data challenges.
The Global Carbon Accounting Software Market revenue was reported to be US$520 million in 2021. It is projected to exhibit a CAGR of 11.7% over the next five years. Growing concerns among consumers and investors as well as strict government regulations are expected to drive the growth of the market during the forecast period. In addition, the effective tracking capability of AI-powered software with seamless documentation and maintenance will fuel the expansion of the market in the coming years.
The report notes that, across the globe, government authorities are rolling out strict regulations to reduce harmful greenhouse gas emissions as well as formulating various energy-related rules. Organisations are required to meet the regulatory requirements by observing, monitoring, and measuring the levels of emissions.
The financial impact of non-compliance and demand for energy-efficient products from customers are forcing companies to invest in green technologies. This will drive the growth of the carbon accounting software market in the coming years.
Advanced Emission Management Systems (EMS) help users track their carbon footprint in real-time with better accuracy. This ensures easier management, control, visibility, and efficiency. Moreover, AI-powered algorithms and existing workflows can be integrated with smooth document creation and maintenance. The built-in features automate data collection, save time with automatic invoice uploads and detect missing data with predictive analytics. The system also uncovers carbon reduction opportunities.
Based on application, the oil and gas segment will grow the highest in the carbon accounting software market share due to the increasing focus on energy efficiency by government authorities and private enterprises across the globe.
