As demand for carbon removal credits surges, the biochar industry is emerging as a leading climate solution—but scaling production remains a critical hurdle. Biochar, created through pyrolysis of biomass, locks carbon into the soil, enhances agricultural yields, and repurposes organic waste. In the first half of 2025, biochar accounted for over 90% of all carbon dioxide removal credit deliveries.
The supply chain is dominated by small- and medium-scale producers who struggle to meet large-volume contracts or secure the capital—often $5 million or more—needed to scale. Experts advise producers to “pitch like engineers and think like bankers,” emphasising standardisation, compliance with protocols from bodies like Puro.earth, Verra, Carbon Standards International, and Isometric, and presenting robust economic projections to attract conservative institutional investors.
Major corporations are already leading the way. Companies such as Microsoft and Google have entered into high-profile agreements to purchase large volumes of carbon removal credits. These “hyper buyers” focus on projects that deliver substantial, high-integrity credits, driving both opportunity and competition in the market.
With the global biochar market projected to nearly triple to over $2 billion in the next 7 years, overcoming these barriers is essential for the sector to deliver both climate and economic impact.
