Biochar in the Carbon Economy
- Najma Hasnah
- Sep 2
- 4 min read
Biochar nowadays is expanding as a standout solution not just for sequestering carbon, but also as a viable, revenue-generating product in agriculture and energy markets.
The Power of Biochar: Carbon Sequestration & Soil Health
Biochar is a stable, carbon-rich material created by heating organic waste under low-oxygen conditions—a process known as pyrolysis. This not only captures carbon from the atmosphere and locks it into soil for centuries, but also improves soil structure, nutrient retention, and moisture retention.
As a trusted form of carbon removal, biochar is being recognized for its dual benefit, which climate mitigation and regenerative agriculture.
Biochar’s Role in Carbon Sequestration & Soil Health
Long-Term Carbon Storage Potential
Meta-analyses and modeling studies estimate that biochar systems can sequester between 0.03 and 11 Pg (gigatonnes) of CO₂ equivalent per year depending on feedstock choices, technologies, and biomass availability.
More realistic, independent estimates suggest a sustainable mitigation potential of approximately 2.6 to 10.3 Pg CO₂e annually.
A literature review published in Nature found biochar’s carbon sequestration potential in soils ranges from 0.7 to 1.8 Gt CO₂‑C (equivalent) per year, depending on application rate, biochar stability, and soil type.
According to the UK Biochar Research Centre, even 1 gigaton of carbon per year (roughly 3.7 Gt CO₂) is plausible with scaled deployment, with up to 5–9 gigatons annually possible under more aggressive adoption scenarios.
Comparing Biochar with Other Carbon Removal Methods
Method | Pros | Cons |
CCS (Carbon Capture & Storage) | High volume potential | Very expensive, centralized, energy-intensive |
Afforestation | Enhances ecosystems | Requires large land/water, slow results |
Biochar | Low-tech, scalable, multipurpose | Dependent on biomass, feedstock, production logistics |
Why does biochar stand out?
Simply because it’s decentralized, adaptable for developing nations, and delivers direct local benefits like improved soils, unlike many other carbon removal approaches.
Environmental Benefits for Soil Health and Resilience
Soil Fertility & Nutrient Retention
Biochar enhances soil fertility by retaining nutrients such as nitrogen and phosphorus, which reduces reliance on synthetic fertilizer. The study estimated that biochar made from solid human excrement could provide up to 7% of the phosphorus used around the world each year.
Water Retention & Drought Resistance
Its porous nature significantly boosts soil's water-holding capacity, especially valuable in arid and drought-prone regions.
Greenhouse Gas (GHG) Emission Reductions
Nitrous oxide (N₂O)
Global meta-analyses show biochar can reduce soil N₂O emissions by ∼38% on average Frontiers. One study found reductions of 19% at 20 t/ha and up to 48% at 50 t/ha, with effectiveness tied to application rate and pyrolysis conditions.
Methane (CH₄)
Results vary across soil types. East Asian rice paddy studies report 22.9% reductions in CH₄ emissions MDPI, though some experiments show mixed or negligible effects depending on conditions.
CO₂ Emissions from Soil
Some studies report slight increases in CO₂ emissions in the short term but significant long-term carbon retention benefits. One review showed CO₂ up 1.9%, CH₄ down 3%, and N₂O down 18%, especially when paired with N-fertilizer. Another field study in oil palm soil showed CO₂ and N₂O decreased by 16.8% and 33.8%, respectively.
Credible Methodologies for Biochar Carbon Credits
Recently, Verra's VM0044 methodology (v1.2) for biochar usage in soils and durable materials was approved by the Integrity Council for the VCM, earning the Core Carbon Principles (CCP) label marking a new benchmark for global carbon integrity.
Additionally, the ICVCM endorsed three biochar standards such as Verra VM0044, CAR U.S./Canada Biochar (v1.0), and Isometric Biochar Production & Storage (v1.0) paving the way for high-integrity carbon credit issuance.
Revenue Streams: Carbon Credits + Product Value
Biochar isn’t just about credits; it can be sold as a soil enhancer, used in building materials, or co-produced alongside bioenergy streams. Such multipurpose use fosters a robust, diversified revenue model.
Market & Pricing Trends of Biochar
According to MSCI, rising competition and margin pressures may soften prices until around 2026, though demand and value might rebound afterward.
Notably, demand for biochar carbon credits has doubled over the past two years, highlighting fast-growing market interest.
Southeast Asia: Rapid Market Growth
The Asia-Pacific is projected to increasing, here’s what research says:
Grand View Research estimates growth from USD 53 million (2024) to USD 130 million (2030) (CAGR - 16.1%).
Future Market Insights forecasts Asia-Pacific revenue rising from USD 798 million (2025) to USD 2.37 billion (2035).
Fact.MR projects South Asia & Oceania’s market will climb from USD 414 million (2023) to USD 2.21 billion (2033) (CAGR 17.2%).
These regional trends underscore biochar’s dual appeal for climate and agricultural markets.
Investment Opportunities in Biochar
With credible methodologies now CCP-certified and demand for high-integrity carbon credits accelerating, biochar is expanding as a compelling investment class. Developers have the chance to scale production to meet rising global appetite, while corporate buyers are already stepping in, for example Google signed a deal to buy 100,000 tons of biochar carbon credits from Indian farms by 2030 marking its entry into biochar-based carbon removal.
High-profile deals like these solidify biochar’s credibility and catalyze new investment flows particularly in fast-growing regions such as Southeast Asia, where agriculture and climate action intersect to create unique growth opportunities.
Summary
Biochar is uniquely positioned at the intersection of carbon removal, agricultural enhancement, and market opportunity. With rising demand, falling prices, and solid certification frameworks in place, biochar is not just a climate solution; it’s an investment opportunity.
Curious about biochar and its role in climate solutions?
At Carbon Tide, we’re exploring how biochar projects can remove carbon, improve soils, and open new opportunities for sustainable growth—especially here in Southeast Asia.
If you’re an investor, developer, or policymaker who shares an interest in nature-based climate solutions, we’d be glad to connect and exchange ideas.
Reach us at hello@carbontide.co or follow us on Instagram and LinkedIn for the latest insights.
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