Does the voluntary carbon market value the sustainable development benefits of biochar?
Does the voluntary carbon market value the sustainable development benefits of biochar? Biochar, produced by converting plant material into charcoal, allows for the storage of carbon dioxide while providing additional benefits for the environment and society. A recent analysis reveals that carbon credits associated with biochar are more expensive when they include sustainable development benefits.
In the voluntary carbon market, buyers are willing to pay more for credits linked to biochar projects that contribute to various objectives. For example, every 1% increase in claimed benefits results in a 0.14% rise in the price of credits. This shows that market players attach real value to these additional benefits.
Economic benefits, such as industrial growth or reducing inequalities, are particularly appreciated. Credits associated with economic benefits see their price increase by nearly 24% for each additional benefit in this category. On the other hand, environmental benefits, although numerous, have the opposite effect: the more a credit includes, the more its price decreases, with a 6% drop per additional benefit. Social benefits, such as improving well-being or access to food, generate a slight price increase, but this remains less pronounced than for economic benefits.
The location of projects also influences prices. Credits from European projects are the most valued, while those from Asia or developing countries are sold at lower rates. This reflects a preference for regions perceived as more reliable or better regulated. The technology used to produce biochar, whether industrial or artisanal, does not appear to play a significant role in price setting, although industrial methods generally offer better carbon stability.
This dynamic highlights the importance of verifying claims related to benefits to avoid any exaggeration. Biochar projects can generate various positive impacts, such as soil improvement, food security, or job creation, but also negative or conditional effects depending on their implementation. Buyers therefore seem to favor credits that combine carbon storage with tangible contributions to sustainable development.
The biochar market is still young, but its expansion will depend on the ability to ensure the transparency and credibility of the claimed benefits. Investments in this area could thus support both the fight against climate change and social and economic progress.
Does the voluntary carbon market value the sustainable development benefits of biochar? Biochar, produced by converting plant material into charcoal, allows for the storage of carbon dioxide while providing additional benefits for the environment and society. A recent analysis reveals that carbon credits associated with biochar are more expensive when they include sustainable development benefits.
In the voluntary carbon market, buyers are willing to pay more for credits linked to biochar projects that contribute to various objectives. Every 1% increase in claimed benefits results in a 0.14% rise in the price of credits. This shows that market players attach real value to these additional benefits.
Economic benefits, such as industrial growth or reducing inequalities, are particularly appreciated. Credits associated with economic benefits see their price increase by nearly 24% for each additional benefit in this category. On the other hand, environmental benefits, although numerous, have the opposite effect: the more a credit includes, the more its price decreases, with a 6% drop per additional benefit. Social benefits, such as improving well-being or access to food, generate a slight price increase, but this remains less pronounced than for economic benefits.
The location of projects also influences prices. Credits from European projects are the most valued, while those from Asia or developing countries are sold at lower rates. This reflects a preference for regions perceived as more reliable or better regulated. The technology used to produce biochar, whether industrial or artisanal, does not appear to play a significant role in price setting, although industrial methods generally offer better carbon stability.
This dynamic highlights the importance of verifying claims related to benefits to avoid any exaggeration. Biochar projects can generate various positive impacts, such as soil improvement, food security, or job creation, but also negative or conditional effects depending on their implementation. Buyers therefore seem to favor credits that combine carbon storage with tangible contributions to sustainable development.
The biochar market is still young, but its expansion will depend on the ability to ensure the transparency and credibility of the claimed benefits. Investments in this area could thus support both the fight against climate change and social and economic progress.
About Our Sources
Cited Study
DOI: https://doi.org/10.1038/s44458-026-00096-w
Title: Biochar co-benefits are valued in the voluntary carbon market
Journal: Communications Sustainability
Publisher: Springer Science and Business Media LLC
Authors: Medilė Jokubė; Matti Hyyrynen; Sampo Pihlainen; Kari Hyytiäinen