In the previous article, we have talked about biochar as a way to sequester carbon while also promoting the circular economy. So, are biochar carbon credits actively traded on the established carbon market?

Global Market

Carbon credits from biochar have been sold in the global voluntary carbon market and gained increasing interest since 2020. According to MSCI, the use of biochar carbon credits has soared from less than 1,000 tons in 2020 to 65,000 tons in 2023. Most of these issued credits came from projects in the United States and Brazil. Examples of carbon verifiers that sell biochar carbon credits are Puro.Earth and Carbon Future. In the last quarter of 2024, Verra - a well-acknowledged organization in the carbon market - registered the first biochar project to their Verified Carbon Standard (VCS) market. Verra has released and is currently revising their standard of Methodology for Biochar Utilization to improve its scope and usability. Some buyers of biochar credits include major corporations such as Microsoft Corp. and JPMorgan Chase & Co.

Indonesian Market

In Indonesia, biochar carbon credits are not currently traded yet. However, there are already some project developers that are tapping into biochar projects. Indonesian developer Nol Karbon is calling for investors to participate in their Biochar Utilization as Carbon Sequestration project, which is estimated to generate emission reduction of 34,125 tons of CO2 equivalent  per year. Indonesia’s biochar potential is also gaining interests from foreign project developers. Abu Dhabi’s investor Offset8 Capital together with Singaporean developer Sawa EcoSolutions are developing Sawa Biochar projects in West Java and South Sumatra. This project is targeted to remove up to 50,000 tons of CO2 equivalent annually. In the end of 2024, leveraging biochar became one of the key points discussed in Carbon Digital Conference Indonesia which was hosted by the Indonesia Carbon Trade Association (IDCTA). Thus, we can expect a rise of Indonesian biochar carbon projects in the upcoming years.

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