Are Biochar Carbon Credits Reliable? What to Look For in 2025

Biochar carbon credits have grown in popularity in recent years.

It makes sense. Biochar production removes carbon dioxide from the atmosphere and stores it for hundreds to thousands of years, improves soil health and water retention, and more.

For companies looking to minimize greenhouse gas emissions and shrink their carbon footprints, biochar projects represent a fascinating opportunity.

Of course, not every biochar project is created equal. Project quality and values relies on key factors, such as feedstock, pyrolysis process, carbon accounting methods, and MRV strategy.

In this article, we explain what biochar is and why it's gaining traction in CDR, what makes biochar carbon credits reliable, current pricing trends for biochar credits, and more. We'll also cover Sylvera products and how our tools can help you identify top biochar opportunities.

What Is Biochar and Why Is It Gaining Traction in CDR?

Biochar is a solid, charcoal-like substance that's created by heating organic materials, like agriculture and forest waste, in low-oxygen environments. This process is known as pyrolysis.

It should be noted that not all pyrolysis processes are the same. For instance, biochar made from wood waste is known for high carbon sequestration potential and water retention. Biochar made from agricultural waste, like corn husks, is high in nutrients and improves soil health.

Biochar projects also produce many co-benefits, in addition to quality biochar carbon removal credits. Examples include impressive water retention and soil health as previously mentioned, as well as better crop yield, energy created via the pyrolysis process, and more jobs.

As important as co-benefits are, most companies support biochar projects to offset carbon emissions. These projects produce durable credits that sequester carbon for at least 100 years. This is one reason why Biochar Carbon Removal (BCR) continued as the delivery leader in durable CDR, with 89.4% of the total 116.8 thousand tonnes delivered in Q2 2025..

What Makes a Biochar Carbon Credit Reliable?

Biochar carbon credit reliability is based on three key pillars: feedstock, MRV, and permanence (also known as durability.) Let's take a closer look at each of these pillars:

• Feedstock: The term "feedstock" refers to the organic materials used in the pyrolysis process. Quality feedstock comes from sustainable sourced and/or waste biomass. So the feedstock used by biochar producers is an important consideration in terms of integrity. 
• MRV: MRV refers to the process by which a carbon removal project quantifies the amount of CO₂ it has removed, transparently reports this data, and undergoes third-party verification. In biochar projects, this involves tracking biomass feedstocks, pyrolysis conditions, biochar stability (e.g. H/C ratio), and final application to soil or other storage environments.
• Permanence: The term "permanence" refers to the amount of time biochar removes carbon from the atmosphere. Durable carbon dioxide removal projects remove carbon for at least 100 years. Check with biochar producers (and ratings agencies) to learn about carbon sequestration potential for each biochar project you invest in.

The biochar industry is relatively new, but it still deals with common problems found in other carbon credit initiatives. As such, there's the risk of LCA design, over-crediting, leakage, and monitoring of end use. Do your research before purchasing carbon credits through biochar.

Sylvera offers a Biochar Ratings Framework, which follows our standard of rigorous data-driven assessment, and can be used to inform quality investment decisions.

Artisanal (or Low-Tech) vs Industrial (or High-Tech) Biochar

Biochar projects can generally be grouped into two types: artisanal, also known as low-tech, and industrial, also known as high-tech. Each has unique pros and cons and preferred use cases.

Artisanal biochar production happens on a small scale using basic equipment and a community-driven approach. Examples include soil pits, Kon-Tiki kilns, and pyrolysis cookstoves.

Artisanal biochar production is typically found in the Global South and benefits these areas by providing jobs and stimulating local economies. Said production benefits project developers too, by providing an affordable way to create biochar and minimizing transport emissions.

Industrial biochar production happens on a large scale using advanced technological machinery. Project developers implement standardized industrial processes to create biochar in perpetuity.

This approach allows for more monitoring, continual process optimization, and better emissions control. Project developers can also capture biochar byproducts, like heat, syngas, and bio-oil, which add additional economic benefits to every biochar project.

Put simply, both artisanal and industrial biochar production methodologies fight climate change. The former also benefits local communities while the latter creates a higher-quality product in less time. The kind of project you invest in depends on your company's needs and goals.

Standards and Methodologies for Biochar Credits

When generating carbon credits with biochar, project developers must adhere to specific standards. Key crediting frameworks include Puro.earth, Verra, and Isometric.

• Puro.earth: Created in 2019, the Puro standard ensures quality biochar production. Project developers must meet specific biomass requirements for feedstocks and use qualified reactors, amongst other things. Read Puro's full methodology guidelines.
• Verra: As one of the world's leading registries, it's no surprise that Verra has standards for biochar production. Said standards require feedstocks to be "purely biogenic waste biomass" that would have decayed or combusted. However, project developers can use a range of production processes, from pyrolysis to biomass boilers. There are additional rules for waste heat utilization and soil amendments. Find out more information on the Verra biochar carbon credit methodology page.
• Isometric: Lastly, we have the Isometric biochar standard, which has strict requirements for feedstock, but fewer restrictions on reactors. As for soil fertility, the standard demands compliance with local regulations. Learn more on the Isometric site.

Choosing the right standard matters. Methodologies vary widely in how they define feedstock eligibility, pyrolysis conditions, baseline scenarios, and permanence modelling, which in turn affects the volume, quality, and risk profile of issued credits.

That’s where Sylvera can help.

• For developers, we help identify the most appropriate methodology for your project design — maximising credit volume and quality while ensuring long-term credibility.
  
  
• For buyers, our Biochar Ratings Framework provides a clear, independent assessment of project quality beyond what’s visible on the registry label, evaluating carbon removal potential, permanence, and economic feasibility to inform your company's approach to the carbon market.

How Sylvera Evaluates Biochar Carbon Credit Quality

Let's dig deeper into Sylvera's approach to Biochar Ratings. How do we evaluate biochar carbon credit quality? And why should you trust our ratings? 

At Sylvera, we employ a 10+ person team of internal and external biochar experts. Our experts use the same rigorous and data-driven approach that our company is known for, as well as dozens of academic studies and our proprietary Field Data Science and Machine Learning datasets. Finally, our entire framework is externally reviewed by a qualified committee.

All of this proves that our approach to biochar evaluation is sound. But how do we actually assess these projects? We analyze removal potential, durability, co-benefits, and transparency.

Did the completion of the biochar project lead to the expected amount of carbon storage? Did it result in additional and durable carbon removal? Did it lead to co-benefits like soil health and biodiversity? Were project developers transparent in sharing the data and evidence to back their processes and results?

By asking these questions—and then studying the data to find answers—we can effectively rate biochar projects and ensure you invest in quality projects that fight climate change.

Biochar vs Other Carbon Removal Pathways

Biochar isn't the only carbon removal pathway available to you. How does it compare to other carbon projects, like ARR and BECCS? Should you invest in one over the other?

Forestry projects, like afforestation, reforestation, and revegetation (ARR), are the most popular and affordable carbon removal projects on the market; however, one consideration is that they tend to offer the lowest durability.

Bioenergy with carbon capture and storage projects, BECCS projects for short, offer extremely high durability potential, but most are  still years away and will likely face feedstock challenges in the future.

Biochar projects offer middle to high-end durability, offer incredible co-benefits, and can deliver today, but will face challenges scaling in the future. 

As you can see, every carbon project has pros and cons. When choosing projects to invest in, consider your budget and organizational goals. For low-cost offsetting plans,  a forestry project might be your best bet. If your strategy is to impact climate change at a higher level of permanence - and help people in developing countries, a biochar project is more suitable.

Just remember, the strongest carbon portfolios are diversified. That means a mix of nature-based solutions (NBS, like forestry projects) and carbon dioxide removal (like biochar). 

When it's time to invest, use Sylvera's industry-leading ratings and buyer guidance. Doing so will help you build a diverse and strategic blend of quality carbon credits for your company.

Pricing Trends and Market Demand for Biochar Credits

In 2025, the average biochar carbon credits price is $177 per metric tonne.

This is up from $131 per metric tonne in 2023. Why the surge in price? Biochar projects are in high demand thanks to their relatively low cost, immense benefits, and government support.

Some of the world's largest companies are in on the trend. For example, Microsoft purchased 129k tonnes of biochar in the first quarter of 2024—a nearly 30% increase over its total biochar investment in 2023. J.P Morgan Chase is another Fortune 500 company that supports biochar.

While nothing is certain, experts expect the biochar market to continue its upward trajectory. In fact, some experts predict it will reach $1.35 billion by 2030.

Risks and Red Flags in Biochar Credit Assessment

As beneficial as biochar projects can be, none of them are risk-free. There are a few common issues that impact low-quality projects—issues you should be aware of and look out for:

• Classification of Feedstock and Leakage: Biochar producers could use low-quality feedstock, i.e. feedstock that doesn't adhere to accepted standards. They could also acquire feedstock that had another purpose, which wasn’t accounted for. If the feedstock had another beneficial use, such as bioenergy displacing fossil fuels, diverting it to biochar may increase emissions elsewhere. This unintended consequence is known as “leakage”. 
• Quality of Lifecycle Assessment (LCA): Biochar producers can produce carbon via normal operations. For example, they might have to transport feedstock to a pyrolysis facility. If the transport vehicles burn fossil fuels, the developers will have produced carbon, mitigating climate change potential. Conduct in-depth lifecycle assessment before investing in biochar projects. That way you know their true environmental impact.
• Pyrolysis Conditions and Efficiency: Biochar producers can produce biochar in different ways. For instance, biochar made from wood is often more stable than biochar made from agricultural residue. As such, wood waste biochar is less prone to reversal. Also worth mentioning, artisanal biochar production methods produce less biochar than industrial biochar production methods. Because of this, industrial biochar can be more efficient. Both feedstock materials and production methods should be considered.
• Monitoring End Use of Biochar: Finally, biochar producers must track what they do with the biochar they create. For example, biochar can be added to construction materials. Or spread throughout fields to boost soil health. The way biochar is used can impact its durability. So, study end use when purchasing carbon credits for biochar purposes.

Given these common issues, we suggest asking for specific information before purchasing biochar carbon credits. This includes feedstock origin, a full lifecycle assessment, and data regarding the biochar's expected permanence.

Strategic Role of Biochar in CDR Portfolios

Biochar is a strategic, mid-durability carbon dioxide removal (CDR) option. It also delivers strong co-benefits and has clear MRV potential. Best of all, biochar projects are readily available.

Because of these things, most companies should consider investing in biochar as a means of carbon removal.

The question is, how much should you invest? The answer is: it depends. Is your company at the beginning of its carbon credits journey or is it well-acquainted with the industry? Does your company have a large budget for carbon credits? Also, what kind of emissions does your company produce via daily operations?

The Oxford Offsetting Principles - launched in 2020 as guidance on how best to align offsetting with net zero targets following the mitigation hierarchy - remain a solid approach. They focus on four main elements: 

• Prioritize reduction of your own emissions first, ensure the environmental integrity of the offsets you use, and disclose how those offsets operate
• Shift offsetting towards options that directly remove carbon from the atmosphere
• Shift offsetting towards long-lived storage, which removes carbon from the atmosphere permanently or almost permanently (biochar, for example)
• Support the development of a market for net-zero-aligned offsets

With this in mind, biochar carbon removal projects can meet the strategic needs of most companies—whether they're brand new to the carbon market or have been purchasing credits for years.

How to Invest in High-Quality Biochar Projects

Investing in high-quality biochar projects may seem like a tall order, but it doesn’t have to be—as long as you use the right tools. Sylvera Ratings, for example, will simplify the process.

How so? Our platform will give you in-depth data about individual biochar projects. You can then use this data to assess project quality and make wise investment decisions.

Whether you use Sylvera or not, look for transparent MRV and traceable feedstocks before investing in a biochar carbon removal project. Then track record of delivery information after purchase. These things will help you avoid many of the biochar risks mentioned above.

Want to learn more about Sylvera? Request a free demo to see our platform in action.