How Biochar Carbon Credits Work: From Production to Certification

Introduction

The voluntary carbon market (VCM) is evolving fast. While many carbon credits in the past came from avoided emissions (like renewable energy or cookstoves), there is a growing demand for removal credits — those that physically pull CO₂ from the atmosphere and store it.

Among these, biochar carbon credits are attracting attention. They are not only based on a proven carbon removal process but also come with practical co-benefits for farmers, industries, and ecosystems.

But how do biochar carbon credits actually work? How does a pile of crop residues transformed into black charcoal-like material become a verified carbon credit on a global registry? Let’s break down the journey step by step.

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1. Why Biochar Earns Carbon Credits

Carbon credits represent either avoided emissions (preventing CO₂ from being released) or carbon removals (taking CO₂ out of the air). Biochar falls firmly into the second category.

-Plants absorb CO₂ as they grow.

-Normally, crop residues or forestry waste would decompose or burn, releasing CO₂ back into the air.

-When converted into biochar through pyrolysis, up to 50% of that carbon is locked away in a durable form.

-This stability means the carbon will stay stored for hundreds to thousands of years, qualifying as a long-term carbon removal.

This is why registries like Verra and Puro.earth accept biochar as a valid removal method — it provides additionality, durability, and measurability, which are the backbone of credible carbon credits.

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2. From Pyrolysis to Credits: The Lifecycle

The journey of a biochar carbon credit can be broken into stages:

🌾 Feedstock Collection

Farmers and industries provide biomass residues — rice husks, maize stalks, sawdust, manure, etc. The project documents where this feedstock comes from and ensures it is sustainably sourced.

🔥 Pyrolysis and Production

Biomass is heated in a low-oxygen reactor, producing biochar, syngas, and bio-oil. Carbon accounting focuses on the mass and quality of biochar produced.

📦 Application & Storage

Biochar must be stored in a way that prevents decomposition — usually by applying it to soils, embedding it in construction materials, or using it in waste/water treatment.

📊 Monitoring, Reporting, Verification (MRV)

Data is collected on feedstock types, reactor efficiency, biochar yield, and final application. Independent auditors verify this data.

🏦 Certification & Issuance

Registries like Verra, Puro.earth, Isometric, or Carbon Standards International (CSI) certify the credits after audit. One credit = one ton of CO₂e durably removed.

💰 Trading in Carbon Market

Once certified, credits are listed on registries and sold to corporates, investors, or governments seeking to offset emissions or meet net zero goals.

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3. Methodologies for Biochar Carbon Credits

The credibility of a carbon credit depends on the methodology used. For biochar, major standards include:

– Verra VM0044 (Biochar Utilization Methodology)

• • Focus on lifecycle accounting and conservative assumptions.

  • Popular with global projects, including smallholders.

– Puro.earth Biochar Standard

• • First dedicated standard for biochar.

  • Emphasizes permanence and robust accounting.

– Isometric Biochar Methodology

• • Focuses on high scientific rigor and open-data approach.

– CSI Artisan & Global Biochar C-Sink

• • Targets smaller artisanal kilns and projects in the Global South.

Each methodology sets rules on eligible feedstocks, pyrolysis conditions, stability testing, and MRV requirements. Projects must follow these closely to gain certification.

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4. The Role of MRV (Monitoring, Reporting, Verification)

MRV is the backbone of credit credibility. Without it, buyers will not trust the climate impact.

Monitoring Tools

-Mass balance: Measuring weight of biomass in vs. biochar out.

-Lab tests: Assessing biochar stability (carbon content, H/C ratio).

-Digital MRV (dMRV): Satellite data, mobile apps, IoT devices, and blockchain used for field tracking (e.g., Planboo’s mobile dMRV system in Africa).

Verification

Independent third-party auditors check project claims and calculations.

Reporting

Data must be submitted regularly to the registry for transparency.

This makes MRV both a cost factor and a trust factor in biochar projects.

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5. Risks and Integrity Concerns

While biochar credits are promising, they are not risk-free. Common concerns include:

-Non-additionality: Was the biochar project truly enabled by carbon finance, or would it have happened anyway?

-Reversal Risk: Could biochar degrade or burn, releasing carbon? (Low risk, but still considered.)

-Over-crediting: Incorrect assumptions about stability or carbon content.

-Leakage: Diverting feedstock from other uses (like animal fodder).

-Delivery Risk: Project fails to meet promised volumes.

Strong methodologies, conservative crediting, and MRV help address these risks.

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6. Economics of Biochar Credits

Biochar credits are currently priced higher than most other credits because:

-They are removals, not avoidance.

-They have durability (100+ years).

-They deliver co-benefits.

Typical price range: $100–$250 per ton CO₂e (depending on region, technology, and buyer demand).

However, a gap remains: suppliers often need $180/ton to break even, while buyers sometimes push for $130–150/ton. Long-term offtake agreements and corporate buyers with strong ESG goals are helping close this gap.

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7. Who Buys Biochar Credits?

-Corporates with Net Zero Targets (e.g., Microsoft, Shopify, Stripe).

-Investors & Climate Funds looking for credible removals.

-CSR Programs in agriculture and sustainability.

-Governments & Development Banks supporting Global South projects.

Notably, biochar accounted for 90%+ of durable removals delivered in 2023–24 — showing its dominance in the market.

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8. The Global South Advantage

Biochar projects in India, Africa, and Latin America are gaining traction because they:

-Use abundant agricultural residues.

-Generate local jobs and farmer income.

-Contribute to climate adaptation (better soils, water retention).

-Attract buyers interested in social impact + carbon removal.

This makes them more competitive in the carbon market compared to purely tech-heavy CDR approaches.

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Conclusion

Biochar carbon credits represent one of the clearest, most credible pathways for scaling durable carbon removals today.

From feedstock sourcing to pyrolysis, from MRV to registry certification, the process ensures that every credit sold reflects real, additional, and permanent carbon removal.

For buyers, biochar credits provide not just climate benefits but also social and ecological co-benefits. For producers, they open up new revenue streams that can make rural economies stronger and more climate-resilient.

In short, biochar credits are more than just offsets. They are part of a bigger climate and development solution, connecting waste, technology, and carbon markets into one powerful system.

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About Anaxee:

Anaxee drives large-scale, country-wide Climate and Carbon Credit projects across India. We specialize in Nature-Based Solutions (NbS) and community-driven initiatives, providing the technology and on-ground network needed to execute, monitor, and ensure transparency in projects like agroforestry, regenerative agriculture, improved cookstoves, solar devices, water filters and more. Our systems are designed to maintain integrity and verifiable impact in carbon methodologies.

Beyond climate, Anaxee is India’s Reach Engine- building the nation’s largest last-mile outreach network of 100,000 Digital Runners (shared, tech-enabled field force). We help corporates, agri-focused companies, and social organizations scale to rural and semi-urban India by executing projects in 26 states, 540+ districts, and 11,000+ pin codes, ensuring both scale and 100% transparency in last-mile operations.

Want to know how we do this step-by-step? or need help with the implementation work, Connect with our Climate team at sales@anaxee.com