One of the most credible and commercially viable carbon removal solutions, increasing soil aeration and reducing greenhouse gas output from the ground, helping lock CO2 into the earth indefinitely. But the industry needs a giant leap to scale up.
The global conversation on climate action is undergoing a pivotal shift: durable carbon removals are no longer viewed as a novel concept, but as a critical necessity. At COP30 in Belém, carbon dioxide removal (CDR) was the agenda for the first time, underscoring its essential role in enabling governments and corporations to achieve net zero targets and drive a truly sustainable transition.
Among the available options, biochar stands out as one of the most scientifically credible and commercially viable solutions. But despite growing interest and optimistic market projections, the landscape is fragmented, and most projects remain too small to meet climate targets. Unless the sector takes the leap to industrial, scaled deployment, it risks being sidelined as other carbon removal pathways scale up.
Put simply, the biochar market needs to professionalise; shifting from artisanal deployment to structured, investable, de-risked, and replicable models.
The Scale Challenge
Making the Leap
Scaling requires overcoming some key systemic barriers – and in doing so, removing the uncertainty that currently hangs over the industry. We highlight:
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Offtake uncertainty – Contracts are often short-term and poorly structured, leaving revenue streams exposed. Developers can improve bankability with tightened contract terms, aligned durations with payback periods, and specialist legal advice.
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Fragmented voluntary carbon market rules – Voluntary standards vary widely, creating compliance headaches and undermining credibility. At the same time, the supply of attractive, long-term biochar credits is limited because the market is dominated by voluntary arrangements, with most credits already contracted to a handful of large corporate buyers. This leaves developers with little negotiating power, but by structuring longer-term, certified contracts, diversifying project pools, and managing risk they can make their credits more appealing.
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Biochar Offtake and Pricing – Biochar projects face complex challenges in balancing multiple revenue streams – carbon credits, physical biochar sales, and heat residue – each with their own market dynamics and risks. Developer success depends on sophisticated financial management, strategic partnerships, and operational efficiency to ensure both profitability and eligibility for carbon credits.
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Technology selection – The technological landscape is fast evolving. Limited guidance on risk, performance and durability makes technology choices fraught. Developers should prioritise proven, scalable technologies, with robust risk management, and due diligence to ensure reliability and investor confidence.
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Regulatory complexity – Meeting differing documentation and regulatory requirements across jurisdictions adds cost and delay. Developers need to understand this complex and changing landscape. They can manage these burdens effectively by starting early, digitising processes, streamlining information flows, and engaging with local experts.
These challenges aren’t just technical, we need to build the infrastructure, frameworks and practices that will attract the capital needed to professionalise the sector. In doing so, we can transform biochar’s image from an emerging concept to a credible, investable solution that inspires confidence among mainstream investors.
The Opportunity Ahead
Biochar is ready to grow. The science is solid, and the demand for durable removals is surging. The technology is ready to deploy but to realise its full potential, the industry has to scale and de-risk. Professionalisation is the key to unlocking the capital needed to scale this critical climate technology.
Image: Marijn Bruinen / Unsplash
