Global Biochar Market Surges, Promising Climate Change Mitigation

The International Biochar Initiative (IBI) and the US Biochar Initiative (USBI) announced substantial growth within the global biochar industry, as detailed in their 2023 report. The market, now valued at $600 million, shows a 91% CAGR production growth rate from 2021 to 2023 according to the study. This first global research since 2015 involved over 1,000 stakeholders from 101 countries, signaling vast engagement and potential in using biochar for carbon dioxide removal (CDR).

Biochar, produced from organic materials such as crop residues and forestry trimmings, is recognized for its ability to significantly reduce atmospheric carbon dioxide, contributing over 90% of carbon credits in 2023. With production reaching at least 350,000 metric tonnes annually, forecasts suggest the biochar market could expand to $3.3 billion by 2025. The report indicates a momentum towards achieving a gigaton of biochar carbon removal by 2040, highlighting the technology's crucial role in climate change mitigation.

Despite the optimism, challenges like enhancing participation in carbon markets and scaling biochar markets are noted. The IBI and USBI stress the importance of market development and industry collaboration to realize biochar's potential in industrial and agricultural sectors for meeting greenhouse gas emissions targets. The report advocates for diversified production technologies and business models to accommodate diverse scales of biochar production worldwide.

Overall, the findings underscore the biochar industry’s growth and its emerging status as a key technology for carbon removal, encouraging increased engagement across industry sectors to support future expansion.