The Pyrolysis Revolution: Biochar’s Rise in Carbon Markets

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The landscape of climate mitigation is undergoing a significant transformation, with a growing focus on not just reducing emissions but actively removing carbon dioxide from the atmosphere. At the forefront of this shift is biochar, a durable carbon-rich material produced through the process of pyrolysis. This ancient technique, now applied on an industrial scale, is revolutionising carbon dioxide removal (CDR) and establishing itself as a cornerstone of the global carbon market. While the market has experienced a period of volatility, biochar’s verifiable permanence and substantial co-benefits are driving a new wave of demand, moving the market’s emphasis from avoidance to tangible, long-term removal.

The Science of Pyrolysis and Durable Removal

Pyrolysis is a thermochemical process that heats biomass, such as agricultural waste or forestry residue, in a low-oxygen environment. Unlike combustion, which releases carbon into the atmosphere as CO₂, pyrolysis converts the biomass’s organic carbon into a highly stable, solid form. This resulting substance, biochar, is composed of complex aromatic carbon rings that are resistant to microbial decomposition. When incorporated into soil, this locked carbon can remain sequestered for hundreds to thousands of years.

This durability is a key differentiator from other carbon mitigation strategies. Many nature-based solutions, like afforestation or reforestation, face the risk of carbon reversal due to wildfires, disease, or land-use change. Biochar’s permanence provides a higher degree of certainty, which is highly valued by corporate and governmental entities seeking to meet their net-zero targets. The production process also yields valuable byproducts, including bio-oil and syngas, which can be harnessed for renewable energy. This closed-loop system embodies the principles of the circular economy, turning agricultural waste into a valuable climate solution.

The Market Boom and the Premium on Removal

The market for biochar is expanding at an explosive rate. According to a report from Fortune Business Insights, the global biochar market was valued at $763.48 million in 2024 and is projected to grow to over $2 billion by 2032 (Fortune Business Insights, 2024). This growth is directly linked to the burgeoning demand for high-quality carbon removal credits. In fact, an analysis by the International Biochar Initiative (IBI) highlights that biochar’s contribution to carbon removal was over 90% of delivered carbon credits in 2023 (International Biochar Initiative, 2024). This is a powerful testament to its current market position and scalability.

This surge in demand has also led to a significant increase in the price of biochar carbon credits. According to analysis from the carbon offset pricing firm Sylvera, the average price for a biochar carbon credit in 2025 is $177 per metric ton, a substantial rise from the $131 per metric ton average in 2023 (Sylvera). This price premium reflects the market’s shift in focus from mere carbon avoidance to verified, permanent removal. Avoidance credits, which prevent emissions from entering the atmosphere in the first place, are still important but are increasingly seen as an initial step. For companies to truly neutralize their emissions, particularly those that are difficult to abate, the purchase of durable removal credits is becoming a necessity. The World Economic Forum, while not publishing a single “carbon market report,” has highlighted the importance of a portfolio approach to climate action, where innovative technologies like biochar play a critical role in stabilizing a market that has historically been volatile (World Economic Forum, 2023).

Co-benefits and a Holistic Solution

Biochar’s value proposition extends far beyond carbon sequestration. Its application as a soil amendment offers a myriad of agricultural and ecological benefits, which in turn enhance its appeal to a wide range of buyers and investors. When added to soil, biochar’s porous structure improves water and nutrient retention, creates a micro-habitat for beneficial soil microbes, and can lead to increased crop yields (International Biochar Initiative, 2024). This dual-purpose utility provides a compelling economic and environmental case for its use.

The co-benefits of biochar also align with broader sustainability goals, such as improving food security, reducing the need for chemical fertilizers, and preventing agricultural waste from releasing methane—a potent greenhouse gas—through decomposition. For project developers, these additional benefits can create multiple revenue streams and make projects more resilient. From a corporate perspective, investing in biochar carbon credits not only helps meet climate targets but also contributes to community development and ecological restoration, bolstering a company’s social and environmental credentials.

The Path to Scale and the Future of CDR

Despite its clear advantages, the biochar market is not without its challenges. The need for robust and transparent measurement, reporting, and verification (MRV) systems is paramount to maintaining market integrity. Organizations like Puro.Earth and Verra are working to standardize methodologies, ensuring that every credit represents a real and lasting climate benefit. For instance, Puro.Earth has certified over 70 biochar-based carbon removal projects (Puro.Earth), while Verra’s VM0044 methodology has been approved by the Integrity Council for the Voluntary Carbon Market (ICVCM) as a high-integrity climate solution (Verra). This rigorous verification process builds trust and provides confidence to buyers.

Looking ahead, the role of biochar is expected to grow as the global community races toward net-zero. It represents a practical, market-ready solution that bridges ancient techniques with modern climate needs. By turning waste into a durable carbon sink, biochar can serve as a cornerstone of a wider climate strategy that combines emissions cuts, carbon removals, and ecosystem restoration. While other CDR technologies like direct air capture (DAC) and enhanced weathering are still in earlier stages of development or have higher costs, biochar stands out as a reliable and scalable tool that we can deploy today to build a more resilient and sustainable future.

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