As corporate net zero commitments intensify, the demand for high-impact, durable carbon dioxide removal (CDR) solutions is rising. Biochar—a carbon-rich material made by heating organic waste (biomass) in a low-oxygen environment (pyrolysis)—is gaining traction as a gamechanger. Yet, its rise raises complex questions around quality, affordability and scale.
In a webinar hosted by Climate Impact X (CIX), leading voices from the biochar ecosystem shared practical insights to help companies assess and invest in this emerging pathway. Moderated by Julien Hall, Head of Intelligence at CIX, the panel featured Alvin Lee (Puro.earth), Daniel Guarín (Carboneers), Lucia Brusegan (International Biochar Initiative) and Tom Spencer (Swiss Re).
Here are five key takeaways to help corporate sustainability teams navigate the biochar opportunity:
1. Biochar offers one of the most durable and scalable CDR pathways today
Biochar locks carbon into a stable, solid form that remains stored for centuries (100-1,000 years). Recognised by the Intergovernmental Panel on Climate Change (IPCC) as a negative emissions technology, biochar is one of the few CDR solutions today that delivers both permanence and ecosystem co-benefits such as improved soil health and biodiversity protection—supporting broader ESG goals.
As Lucia from IBI explained, project effectiveness and credibility depend on three interlinked factors:
- Feedstock: The type and condition of biomass used directly impact the carbon content and quality of the biochar. Agricultural waste such as crop residues is preferred, but its moisture content must be managed to ensure process efficiency and low emissions.
- Production technology: Pyrolysis conditions (temperature, duration, equipment) influence the stability and permanence of the stored carbon.
- Application: Where and how biochar is used—most commonly as a soil amendment, but increasingly in construction or animal agriculture—shapes both its climate impact and co-benefits
Daniel of Carboneers highlighted that new scientific research has proven biochar to be even more durable than previously believed—strengthening confidence in its long-term carbon storage potential. He noted that developers like Carboneers are at the forefront of the latest scientific advances, implementing new lab methods and production technologies to ensure permanence is accurately measured and maintained.
He also pointed to how real-world project development is demonstrating scalability. “Our collaboration with multiple registries enables us to adapt across local contexts, registry requirements and buyer needs. We’re working with Terrafront on the first Verra biochar project, developing high-tech industrial projects with Puro and Isometric, and expanding our existing projects with CSI in India and Ghana.”
2. Buyers must understand quality drivers—but don’t need to be scientists
Understanding what makes a high-quality biochar credit doesn’t require deep technical knowledge—but a few fundamentals go a long way. Advances in measurement, reporting and verification (MRV) are helping to build buyer confidence by making it easier to track permanence and ensure biochar credits represent authentic, lasting carbon removals.
Alvin from Puro.earth, one of the leading registries for biochar, outlined three key quality pillars:
- Sustainably sourced feedstock
- Appropriate production conditions (e.g. high temperatures and low hydrogen-to-carbon ratios)
- Secure and verifiable storage for produced biochar (soil, concrete, or roads)
In addition, managing by-product gases—such as methane released during production—is essential to maximising climate benefit and avoiding unintended emissions. As Alvin puts it, “What happens to the biochar after production—how it’s stored and applied—is just as important as how it’s made. Proper application ensures permanence.”
3. You can build a business case—even at $100+ per tonne
Biochar credits currently trade between USD $100–200 per tonne—less expensive than technologies like direct air capture, but still a premium compared to traditional avoidance credits.
Swiss Re’s Tom shared how the company built internal buy-in for high-quality removals by introducing a rising internal carbon price—from $100 in 2021 to $200 by 2030. This created a dedicated budget to support investments in durable solutions like biochar.
Navigating a fragmented and fast-evolving market can be challenging, with varying standards, verification approaches and pricing structures. Tom’s advice: stay informed on regulatory developments, consider long-term offtakes, and work with experienced intermediaries—such as CIX—to streamline procurement and access high-quality supply.
He also stressed the importance of senior leadership support and policy alignment, “We’re exposed to climate risk as a reinsurer. Investing in removals is part of future-proofing our own operations.”
4. Different project types suit different ESG goals
Biochar can be produced in small, community-led setups or large, industrial facilities—both have a role in a diversified sustainability strategy. “Consider a portfolio approach,” advised Lucia. “Artisanal and industrial projects offer complementary benefits—and together, they diversify ESG impact while managing risk.”
| Artisanal Biochar | Industrial Biochar |
| • Strong community and environmental co-benefits—supporting local livelihoods, regenerative agriculture, and circular use of waste especially in the Global South. • Typically small-scale and decentralised, appealing to buyers seeking community-based impacts or UN SDG alignment. • Requires strong controls and monitoring of quality consistency, scalability and MRV. | • Use automation and centralised facilities to achieve scale, standardisation and traceability. • Appeal to buyers prioritising volume, procurement efficiency and consistent quality across portfolios. • More reliant on carbon credit revenues to sustain operations and often less embedded in local economies. |
5. Beyond carbon, biochar brings supply chain and resilience benefits
Insetting use of biochar is on the rise, particularly among farmers in the Global South. It improves soil health, boosts yields, and reduces the need for fertilisers and pesticides—making it a practical, farm-level solution.
For global food and beverage companies—where Scope 3 emissions can account for 70–90% of the total carbon footprint—biochar presents a scalable pathway to address emissions while building resilience and supporting smallholder livelihoods. Sectors such as coffee and cocoa are already integrating biochar into their sourcing practices to achieve this.
As Daniel explained, “We’re seeing growing interest from agrifood companies sourcing from the Global South. Biochar supports soil health, cuts emissions, and improves resilience to climate shocks—all while diversifying farmers’ incomes.”
These multifaceted benefits make biochar particularly compelling for companies aiming to reduce Scope 3 emissions, enhance supply chain stability, and deliver measurable social impact.
Start small, but start now
The session made it clear: the biochar market is maturing and growing. Puro.earth expects a 75% increase in certified volume in 2025 alone. Buyers can already access a range of projects via spot purchases, long-term offtakes, or intermediaries.
With regulatory expectations rising, now is a critical moment for companies to act—securing access to high-quality removals while helping shape the future of this market. Those who engage early will be best positioned to demonstrate climate leadership, build resilience, and integrate removals into long-term decarbonisation strategies.
From project fundamentals and structuring long-term offtake agreements to accessing market intelligence, CIX is here to help. Reach out to our team at [email protected] to discuss how we can support your procurement journey.
To watch the full webinar, contact us.
