In the rapidly evolving world of carbon dioxide removal (CDR) technologies, biochar stands out not only for its impressive market growth but also for its significant environmental co-benefits.
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A recent report by the International Biochar Initiative (IBI) and the US Biochar Initiative (USBI) showcases the soaring success of the global biochar market, which hit a market value milestone of $600 million in 2023, demonstrating a remarkable 91% Compound Annual Growth Rate (CAGR) production growth rate from 2021. This growth is a testament to the industry’s potential and its crucial role in combating climate change.
Biochar is one of the Intergovernmental Panel on Climate Change-endorsed (IPCC) CDR technologies, and the IPCC also notes that there is no longer an emissions budget scenario left that allows the possibility of staying on a 1.5-2C pathway without greenhouse gas emissions reduction paired with CDR.
Biochar, a stable carbon form derived from organic materials like agricultural residues and forestry trimmings, is a pivotal solution in the fight against global warming. By capturing carbon in a stable form during biochar production, and with high technology readiness levels, biochar offers accessible and durable carbon dioxide removal.
For this and other factors, in 2023, biochar’s contribution to carbon removal was over 90% of delivered carbon credits, and recent research points to its potential to remove up to 6% of global emissions annually. This all sets the stage for reaching a gigaton of biochar carbon removal by 2040, marking a significant milestone in global efforts to mitigate climate change.
The 2023 Global Biochar Market Report, a comprehensive survey involving over 1,000 stakeholders from 101 countries, marks the first of its kind since 2015, spotlighting the biochar industry’s robust growth and the diversity within its technologies and business models. It underscores the dual challenge of cultivating high-volume, high-value markets for biochar and navigating the complexities of voluntary carbon markets, both crucial for the sector’s advancement.
Developing these markets is vital for enhancing biochar’s carbon removal impact, ensuring its economic sustainability, and incentivizing broader adoption across various sectors. High-volume markets aim to escalate biochar production, thus boosting biochar carbon removal, while, at the same time, high-value markets seek to make biochar production more economically viable. Voluntary carbon markets play a pivotal role, offering a mechanism for biochar projects to generate and sell carbon credits, thus providing essential funding, market validation, and incentivization for carbon removal efforts. Yet, the full potential of these markets and biochar’s role in climate change mitigation hinges on overcoming significant challenges, including the need for standardized and verified carbon sequestration claims, market acceptance, and policy integration, necessitating concerted efforts among industry stakeholders.
According to Lucia Brusegan, IBI Board of Directors Chair, biochar is a “system,” underlining the interconnectivity between market demand, carbon credits, and the physical benefits and uses of biochar. The adaptability of biochar systems to various scales of production, from large industrial plants to small kilns aiding farmers, demonstrates its versatile role in addressing climate change challenges.
The report also calls for increased engagement from all industry sectors and geographic regions, highlighting the critical role of industry organizations in supporting growth through market demand generation, policy advocacy, and access to funding. Myles Gray, Operations Director at USBI and co-author of the report, emphasizes the ongoing efforts to develop robust markets for biochar in industrial and agricultural supply chains, aiming to meet greenhouse gas (GHG) emissions targets such as those outlined by the Science Based Targets initiative (SBTi).
The global biochar market is also poised for exponential growth, projected to reach nearly $3.3 billion by 2025. This growth is not just a financial success story; it represents a beacon of hope for environmental sustainability, soil fertility, and climate resilience. The collaborative efforts of organizations like IBI and USBI, alongside their partners, are crucial in paving the way for biochar to increase its role as a key player in global CDR strategies.
The continued innovation and adoption of biochar technologies hold the promise of a healthier planet, underscoring the vital connection between economic growth and environmental stewardship.
More on the topic: Biochar: The Miracle Material For a Sustainable World
