Biochar in India’s Carbon Market Introduction 

• India is gearing up for its carbon market, which is set to launch in 2026, and one of the most promising carbon dioxide removal (CDR) technologies emerging in this landscape is biochar. 
• Made from agricultural residues and organic municipal waste, biochar is a carbon-rich form of charcoal that has the potential to play a pivotal role in sustainable waste management and long-term carbon sequestration.

What is Biochar and How Can it Help India?

• Biochar is a carbon-rich material produced through the pyrolysis process, where organic waste, such as agricultural residue and municipal solid waste, is heated in a low-oxygen environment. The process not only helps in carbon sequestration but also produces valuable by-products like syngas and bio-oil.
• The unique property of biochar lies in its ability to trap carbon for centuries, making it an effective carbon sink. If India could harness just 30–50% of its surplus waste, it could produce an estimated 15–26 million tonnes of biochar annually, contributing significantly to carbon dioxide removal (CDR) and helping India achieve its climate targets.
• India generates a staggering 600 million metric tonnes of agricultural residue and 60 million tonnes of municipal solid waste every year. Unfortunately, much of this waste is either burned or dumped, contributing significantly to air pollution and greenhouse gas emissions. However, there is a sustainable solution that could help India address its waste disposal problems while simultaneously combating climate change and providing a renewable energy source—biochar.
• Biochar’s Potential for Carbon Sequestration and CO2 Reduction: India’s agriculture and waste sectors contribute heavily to its greenhouse gas emissions. The burning of agricultural residues releases massive amounts of CO2 into the atmosphere, while waste in landfills produces methane, a potent greenhouse gas. By converting this waste into biochar, India can significantly reduce its carbon emissions.
• Carbon Sequestration Potential:
  • 15–26 million tonnes of biochar could help remove approximately 0.1 gigatonnes of CO2-equivalent annually. This makes biochar a vital tool in India’s strategy for climate change mitigation.
  • Biochar also helps improve soil fertility, making it a win-win for both the environment and agriculture.
• Energy Generation: Biochar production does more than just help the environment; it can also produce valuable by-products, such as syngas and bio-oil, which can be used for energy generation.
• Energy Generation from Biochar: The production of biochar from agricultural and municipal waste can generate around 8–13 TWh of electricity annually, contributing to 0.5–0.7% of India’s total electricity consumption. This electricity can replace up to 0.7 million tonnes of coal annually, providing a clean alternative to traditional fossil fuels.
• Substituting Fossil Fuels: Bio-oil produced in the pyrolysis process can replace up to 12–19 million tonnes of diesel or kerosene, reducing India’s reliance on crude oil imports and helping to cut over 2% of fossil fuel-based emissions.

Biochar: Solution for Multiple Industries

• A Powerful Tool for Climate Change Mitigation: Biochar’s stable molecular structure enables it to store carbon in the soil for extended periods, anywhere from 100 to 1,000 years. This makes it an invaluable tool for carbon sequestration—capturing and storing carbon dioxide from the atmosphere and mitigating climate change. Biochar’s Long-Term Benefits:

• • • Permanent Carbon Storage: Unlike other forms of carbon capture, biochar’s stable structure allows it to sequester carbon over centuries, making it one of the most reliable forms of long-term carbon storage available.
    • Soil Health Improvement: As biochar is added to soil, it not only locks carbon but also enhances soil fertility and water retention, benefiting agriculture in arid regions and degraded lands.

• Enhancing Productivity and Reducing Emissions: Biochar offers multiple agricultural benefits, making it a highly effective solution for both carbon sequestration and improved farming practices. One of its significant advantages is its ability to reduce greenhouse gas emissions, specifically nitrous oxide (N2O), a potent greenhouse gas 273 times stronger than CO₂. Key Agricultural Benefits:

• • • Reduction of Nitrous Oxide Emissions: Studies show that biochar can reduce N2O emissions from soils by 30–50%, contributing significantly to climate change mitigation in agricultural systems.
    • Enhanced Soil Organic Carbon: Biochar improves the organic carbon content in soil, leading to healthier soils with better nutrient retention, improved water holding capacity, and enhanced crop yields.
    • Restoring Degraded Lands: In areas where the soil has been degraded due to overuse, biochar aids in land restoration, revitalizing soil and creating sustainable agricultural ecosystems.

• Biochar as a Potential CO₂ Absorber: In addition to its agricultural uses, biochar holds promise for industrial carbon capture. Specially modified biochar has been shown to absorb CO₂ from exhaust gases. Though it currently has lower efficiency compared to conventional methods like carbon capture and storage (CCS), biochar is a potential game-changer in reducing industrial emissions. Applications in Industry:

• • • Biochar can be adapted for use in power plants, factories, and other industrial settings to trap CO₂ emissions, reducing the carbon footprint of energy-intensive industries.
    • As a cost-effective and renewable alternative, biochar could play a crucial role in greening industrial processes and meeting climate targets for emission reductions.

• Strengthening Concrete and Capturing CO₂: Biochar’s applications extend into the construction sector, where it has shown remarkable potential when added to concrete. Incorporating 2–5% biochar into concrete can significantly improve its strength, heat resistance, and carbon capture properties. Benefits in Construction:

• • • Strengthened Concrete: Adding biochar to concrete boosts its compressive strength, making it more durable and sustainable.
    • Increased Heat Resistance: Biochar-infused concrete can withstand higher temperatures, offering benefits in fire-prone areas or high-temperature environments.
    • CO₂ Capture: For every cubic meter of concrete, biochar can help capture up to 115 kg of CO₂, contributing to the reduction of emissions in the construction industry.

• A Sustainable Water Solution: Another area where biochar has demonstrated immense potential is in wastewater treatment. Biochar can act as a filtering agent, removing contaminants from wastewater and improving water quality. In India, where the country produces over 70 billion litres of wastewater daily, biochar’s potential applications in cleaning wastewater could be transformative. Biochar in Water Treatment:

• • Water Purification: One kilogram of biochar can treat between 200–500 litres of water, effectively removing contaminants such as heavy metals, pharmaceutical residues, and organic pollutants.
  • Scalable Demand: India’s demand for wastewater treatment is vast, with an estimated 2.5–6.3 million tonnes of biochar potentially required annually. This creates a significant market opportunity for biochar as a water treatment solution, particularly in urban areas with high levels of pollution.

Barriers to Biochar Adoption in India

• Lack of Standardized Feedstock Markets: One of the main barriers to widespread biochar adoption in India is the absence of standardized feedstock markets. The production of biochar relies on organic waste materials, including agricultural residue and municipal solid waste. However, inconsistent availability and varying quality of feedstock make it difficult to establish a reliable and efficient supply chain for biochar production. Key Issues:

• • • Inconsistent Supply: The irregularity in the availability of agricultural residues and organic waste affects the economies of scale required for large-scale biochar production.
    • Quality Control: Without standardization, the quality of feedstock can vary significantly, making it challenging to produce biochar consistently with the desired properties for carbon sequestration and soil enhancement.

• Absence of Uniform Carbon Accounting Frameworks: The lack of uniform carbon accounting frameworks for biochar production and its impact on carbon sequestration is another major hurdle. Currently, biochar is not widely recognized as a carbon removal technology in carbon credit systems, which diminishes its attractiveness to investors and stakeholders. Challenges in Carbon Accounting:

• • • Lack of Standardization: There is no clear, standardized method to measure the amount of carbon sequestered by biochar. This makes it difficult for biochar projects to gain recognition in carbon credit markets, which are essential for financing such initiatives.
    • Investor Confidence: The absence of a standardized framework affects investor confidence in biochar as a reliable and verifiable carbon sink, hindering its adoption at a large scale.

• Limited Financial Resources and Market Uncertainties: While research supports the technical feasibility of biochar, its deployment is constrained by limited financial resources and market uncertainties. Biochar production is capital and labor-intensive, requiring substantial upfront investment in infrastructure, technology, and supply chain development. Financial Barriers:

• • • High Initial Investment: Establishing biochar production units requires significant capital for technology, facilities, and expertise. Many potential biochar projects lack access to funding due to financial uncertainties.
    • Unpredictable Markets: Market demand for biochar is still in its nascent stages, and the lack of a well-established biochar market makes it difficult for companies to assess the potential return on investment.

• Insufficient Policy Support: The lack of strong policy backing is another critical issue. Biochar’s potential as a carbon removal technology and sustainable solution is yet to be fully recognized by Indian policymakers. Without supportive government policies, it is difficult for biochar production to achieve the scale required to make a meaningful impact on climate change and emissions reduction. Policy Gaps:

• • • Incentive Structures: There are no clear incentive structures in place to encourage the adoption of biochar, either for farmers, industries, or local authorities. Policies that support biochar production, like subsidies or tax breaks, are lacking.
    • Integration with Climate Goals: Biochar is not yet integrated into India’s climate strategy, which means it is not part of the carbon credit systems or carbon market frameworks.

• Weak Awareness and Knowledge Gaps: A significant barrier to biochar adoption is the lack of awareness among stakeholders, including farmers, industries, and government bodies, regarding the benefits of biochar and its potential applications. This lack of awareness restricts biochar’s market development and adoption. Awareness Challenges:

• • • Farmer Engagement: Many farmers are unaware of how biochar can improve soil health, increase crop yield, and reduce greenhouse gas emissions from agricultural activities.
    • Stakeholder Education: There is a lack of training programs for stakeholders in sectors like waste management, agriculture, and construction, which could otherwise benefit from biochar.

• Insufficient Monitoring, Reporting, and Verification (MRV) Systems: The absence of robust Monitoring, Reporting, and Verification (MRV) systems is another barrier to large-scale biochar adoption. Without proper MRV frameworks, it is difficult to track and verify the impact of biochar on carbon sequestration, soil health, and emission reductions. MRV Challenges:

• • • Lack of Standardized Reporting: Without standardized MRV systems, it becomes difficult for biochar projects to prove their environmental impact and gain support in carbon markets.
    • Limited Oversight: Without consistent monitoring, it is challenging to ensure the quality and effectiveness of biochar projects, hindering their scalability.

• Coordination Across Policies and Sectors: Another major obstacle to biochar adoption is the lack of coordination between agriculture, energy, and climate policies. Biochar production intersects multiple sectors, but the absence of integrated policies and cross-sector collaboration slows down its potential impact. Sectorial Disconnect:

• • Agriculture and Waste Management: While biochar could help with both agriculture and waste management, policies in these sectors often operate in silos, hindering collaboration on biochar-related initiatives.
  • Energy and Climate Strategies: There is no clear policy link between biochar’s carbon sequestration potential and India’s energy or climate action plans

Way Forward 

• Investing in Region-Specific Research and Development (R&D): One of the most crucial steps India must take is to invest in region-specific R&D. Biochar’s applications and effectiveness depend on the type of feedstock used, the local climate, and the soil conditions. Customizing biochar solutions to specific regions will make the technology more effective and scalable across the diverse agricultural zones in India. Key R&D Focus Areas:

• • • Crop Residue Management: Developing biochar production technologies that are optimized for local agricultural residue like rice straw, wheat stubble, and sugarcane bagasse will ensure more efficient conversion of waste into valuable biochar.
    • Bioenergy: Research into biochar’s role in bioenergy production (such as syngas and bio-oil) could further integrate biochar with India’s renewable energy goals, helping address energy deficits in rural areas.

• Integration into Crop Residue Management and Bioenergy Programs: India produces a large volume of agricultural residue annually, much of which is either burned or disposed of inefficiently, causing severe air pollution and contributing to greenhouse gas emissions. By integrating biochar production into crop residue management programs, India can offer an effective, sustainable alternative to burning and waste disposal, while simultaneously benefiting from its carbon sequestration capabilities.

• Integrating Biochar into National Programs: By incorporating biochar into government schemes like the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) or Pradhan Mantri Fasal Bima Yojana (PMFBY), farmers can access financial incentives for producing biochar from crop residue. This would not only reduce air pollution but also improve their soil health.

• • • Bioenergy Programs: Integrating biochar with bioenergy programs could create a circular economy, where crop waste is converted into biochar and the byproducts, such as syngas and bio-oil, are used for electricity generation and energy needs.

• Formal Recognition of Biochar as a Carbon Removal Pathway: To incentivize large-scale adoption, the Indian government must formally recognize biochar as a carbon removal technology in its upcoming carbon market. By integrating biochar into carbon credit systems, India can unlock revenue opportunities for farmers and businesses, fostering economic growth in rural areas. Carbon Credit Opportunities:

• • • Carbon Credits for Farmers: Farmers producing biochar from crop residue could earn carbon credits, providing an additional source of income while contributing to emission reduction.
    • Investment Opportunities: Recognizing biochar in the carbon market will encourage private investment in biochar production technologies, leading to increased production capacity and job creation.

• Job Creation and Economic Growth: The large-scale implementation of biochar production in India has the potential to create over 5.2 lakh jobs in rural areas. These jobs will span various sectors, from waste collection and biochar production to distribution and market development. Job Creation Sectors:

• • • Biochar Production Facilities: Setting up local biochar production units will provide employment opportunities in regions where agriculture is the primary source of livelihood.
    • Research and Development: The focus on biochar-based technologies will also create jobs in R&D, supporting innovation and industry growth.
    • These jobs will help boost rural economies and reduce migration to urban areas, supporting sustainable development and poverty reduction.

• Improved Soil Health, Reduced Fertilizer Use, and Increased Crop Yields: One of the most significant benefits of biochar is its ability to improve soil health, increase water retention, and reduce fertilizer usage. Biochar has been shown to reduce the need for chemical fertilizers by 10–20%, benefiting farmers economically while enhancing soil fertility. Agricultural Benefits:

• • Soil Fertility: Biochar improves soil organic carbon, boosts microbial activity, and enhances nutrient cycling, leading to healthier soils and better crop yields.
  • Increased Crop Yields: Biochar has been linked to crop yield increases of 10–25%, which could significantly improve food security and income for farmers.