Why biochar could reshape how Europe buys and sells carbon credits

Could biochar become Europe's next carbon market solution?

A call to include biochar in Europe's carbon market framework has gained attention from climate scientists and policy specialists. Dr. Mai Bui, Director of Climate Science and Policy at Supercritical, has argued that biochar is "cheap, proven, and permanent." This is significant because Europe's current carbon removal mechanisms are often expensive and difficult to verify at scale. Biochar addresses both problems simultaneously.

The material itself is simple: biomass (agricultural waste, wood residues, or forestry byproducts) is heated in a controlled, oxygen-free environment. This process, called pyrolysis, breaks down organic matter into biochar, gas, and oil. The biochar is then either used directly in agriculture to improve soil fertility or buried permanently to sequester carbon. Once in soil, biochar remains stable for centuries, possibly millennia, making it one of the few carbon removal methods with genuine long-term storage guarantees.

From a carbon market perspective, this permanence is valuable. Many offsetting projects risk reversal: a forest can burn, a wetland can be drained. Biochar, once sequestered, cannot be reversed. This certainty makes it attractive to compliance schemes like the EU Emissions Trading System (ETS) and voluntary carbon market operators who need reliable, verifiable credits to sell.

What makes biochar cost-competitive with other removal methods?

Cost has historically been the barrier to scaling carbon removal in Europe. Direct air capture (DAC) technologies, which pull CO₂ directly from the atmosphere, cost between £150 and £600 per tonne of CO₂ removed. Enhanced weathering and other engineered solutions sit in a similar price range. Biochar, by contrast, costs roughly £30 to £100 per tonne depending on feedstock, process efficiency, and carbon price realised.

This cost advantage stems from biochar's dual benefit. The material is a byproduct of waste management. Farmers and forestry operations already generate the biomass; burning or composting it produces nothing of value and often creates emissions. Converting that waste into biochar turns a disposal problem into a revenue stream. The carbon credits generated from sequestration provide additional income, which helps offset production costs.

For UK businesses, this cost difference matters. If biochar credits are approved in European carbon markets, they will likely be cheaper than alternatives, driving demand among EU companies with carbon obligations. Businesses trading across the border or managing Scope 3 emissions linked to European supply chains may see their offsetting costs fall.

What are the barriers to including biochar in Europe's carbon markets?

Despite its theoretical advantages, biochar faces regulatory hurdles. European carbon markets are cautious about new removal methods. They require proof that biochar production genuinely removes CO₂ and does not simply displace other land uses or create perverse incentives (for example, cutting forests to generate feedstock). Standards must also ensure that biochar quality and stability meet permanence criteria.

The EU's Carbon Removal Certification Regulation, introduced in 2023, sets out rules for certifying CO₂ removal activities. Biochar projects will need to demonstrate compliance with these standards, including rigorous monitoring of carbon sequestration rates, verification of feedstock sourcing, and long-term durability guarantees. The process is thorough but time-consuming, which is why approval has not yet happened despite growing advocacy.

Another challenge is scale. Europe would need thousands of biochar production units across member states to generate meaningful volumes of removal credits. This requires investment in infrastructure, training, and supply chains that do not yet exist at the necessary scale. The economic case is sound, but the practical execution remains uncertain.

What does this mean for UK readers and businesses?

If biochar enters Europe's carbon markets, the effects will ripple across the UK. Businesses with European supply chains will see new carbon accounting pressures. Customers and investors increasingly ask about Scope 3 emissions (emissions embedded in purchased goods and services). If EU suppliers begin offsetting with cheap biochar credits, UK importers may follow suit to remain competitive and credible on climate commitments.

For UK individuals and businesses planning their own offsetting strategy, understanding emerging carbon removal methods is important. Biochar is one of several solutions gaining traction: regenerative agriculture, soil carbon sequestration, and enhanced weathering are others. Offset Britain helps individuals and businesses choose offsetting projects that align with their values and budget. Individual memberships start from £5.99 a month, and business plans from £566 a year, giving access to a portfolio of verified carbon removal and reduction projects. As European carbon markets evolve, having trusted guidance on which methods to support becomes more valuable.

The broader lesson is that carbon markets are not static. They adapt as science improves and technologies mature. Biochar represents a bet that proven, low-cost carbon removal can be scaled faster than more complex engineered solutions. Whether that bet pays off will depend on regulatory decisions over the next 12 to 18 months.

Written and reviewed by the Offset Britain editorial team. Last reviewed 27 July 2026.

Sources & Methodology

1. Carbon Herald: Opinion: Why Biochar Belongs In Europe's Carbon Market
2. European Commission: Carbon Removal Certification Regulation
3. Offset Britain: Individual Offsetting Plans
4. Offset Britain: Business Offsetting Plans

Photo by cottonbro studio.