Quick: which carbon removal method dominates the commercial credit market?

If you guessed Direct Air Capture or Enhanced Rock Weathering, you’d be wrong. The answer is biochar — and it’s not even close.

The Numbers

According to a new market report profiling 148 companies, biochar delivers over 90% of all commercially traded permanent carbon dioxide removal credits. Global production reached at least 350,000 tonnes in 2023, and the market has been growing steadily since.

The global biochar market is valued at $838 million in 2026 and projected to reach $2.3 billion by 2034, growing at a compound annual rate of 13.4%. In North America alone, the market stands at $388 million and is on track for nearly $1 billion by 2034.

Carbon removal credit pricing has stabilized at approximately $150 per tonne of CO₂e — a price point that works for both producers and corporate buyers. Multi-year offtake agreements are becoming standard, giving producers the revenue certainty they need to scale.

Why Biochar Works (Commercially)

Biochar has several advantages that explain its market dominance:

Simplicity. The process is well-understood: heat biomass in a low-oxygen environment (pyrolysis), and you get a stable carbon-rich material. No exotic chemistry, no frontier engineering.

Durability. Biochar can lock carbon away for hundreds to thousands of years when incorporated into soil. That “permanence” is what buyers want when they’re paying $150/tonne.

Co-benefits. Biochar improves soil health, reduces the need for fertilizers, enhances water retention, and can even filter contaminants from water. These agricultural and environmental benefits create value beyond just the carbon credit.

Feedstock availability. Biomass waste — agricultural residues, forestry leftovers, dead trees — is abundant. A new biochar project in California’s Sequoia National Forest will convert dead and dying trees into biochar, projecting removal of up to 10,600 metric tonnes of CO₂ annually.

Going Global

The growth story isn’t just North American. China’s biochar market is transforming agricultural waste into an environmental solution — growing from $73 million in 2026 to nearly $242 million by 2034 at a 16% CAGR. Rice straw, previously burned illegally, now fuels biochar production.

In Africa, Varaha just launched its Industrial Partners Program (VIPP) in Côte d’Ivoire, enabling biomass processing facilities to generate high-integrity carbon removal credits. This model — plugging biochar into existing industrial infrastructure in the Global South — could dramatically accelerate deployment.

The Verification Revolution

The market is maturing beyond simple carbon accounting. New verification approaches include blockchain tracking, IoT monitoring, and integration with climate finance mechanisms like green bonds and blended finance. The evolution from traditional carbon offsets to high-integrity permanent removal credits is pushing biochar into premium pricing territory.

What It Means for CDR

Biochar’s market dominance tells us something important about what works in carbon removal: proven technology, clear permanence, tangible co-benefits, and available feedstock. It’s not the flashiest CDR method — no giant machines, no ocean engineering — but it’s the one that’s actually delivering credits at scale.

The quiet giant of CDR is growing fast. And the rest of the industry should be paying attention.

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Sources

  1. GlobeNewsWire — Biochar Market Research Report 2026-2036 (Feb 2026)
  2. Inkwood Research — Global Biochar Market Forecast 2026-2034
  3. Inkwood Research — North America Biochar Market Forecast 2026-2034
  4. Inkwood Research — China Biochar Market Analysis
  5. PR Newswire — Varaha Launches VIPP in Côte d’Ivoire (Feb 2026)
  6. Recorder Online — Major funding for Tribe water, biochar projects (Feb 2026)

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