The Supply-Chain case for Biochar carbon removal
Agricultural supply chains are under growing pressure to become more resilient to climate and environmental challenges. Biochar is emerging as one potential solution, connecting agricultural residues with durable carbon removal and soil health. Developed by reVive and BioFlux, this white paper explores biochar models, carbon-market dynamics, project economics and potential social and environmental outcomes.
Agricultural supply chains are under growing pressure to become more resilient while responding to climate and environmental challenges.At the same time, companies are increasingly looking for practical ways to reduce emissions, improve soil health and strengthen the resilience of the farming systems on which their supply depends. Biochar is emerging as one potential solution, connecting agricultural residues with durable carbon removal while offering potential agronomic and livelihood benefits.
Biochar is particularly relevant for agricultural supply chains because it can be integrated at different points along the value chain, from farms and cooperatives to processing facilities. Depending on the model, it can help transform underused biomass residues into a soil amendment while creating opportunities for carbon removal and potentially stronger farm-level outcomes. However, the way these projects are designed and implemented matters: feedstock availability, technology, farmer participation, costs, benefit sharing, monitoring and carbon-market requirements can all materially influence their commercial and impact performance.
As interest in biochar grows, so does the need for better market knowledge. Companies and investors need to understand not only the technical potential of biochar, but also which project models make sense in different supply-chain contexts, how carbon markets work in practice, what drives project economics, and where the main risks and uncertainties lie. The social and livelihood benefits of biochar are particularly important but remain less well understood across different farmer engagement models.
reVive, an Investment Development Hub established by IDH in Colombia, works with sustainable land-use businesses and projects to strengthen their investment readiness and connect them with appropriate sources of finance. Through this work with companies and investors, the Hub has seen growing interest in biochar and other emerging climate solutions, alongside a clear information gap around the technical, commercial and impact considerations that shape their investability.
This white paper, jointly developed by IDH and BioFlux, responds to that gap. It brings together technical, operational and market perspectives to examine biochar project models, carbon-market dynamics, project economics, risks and approaches to farmer engagement. Rather than presenting biochar as a universally applicable investment opportunity, the paper seeks to help companies, investors and other stakeholders better understand where it can create value, what conditions are required for credible and scalable deployment, and where evidence is still developing. For reVive, this publication is also part of a broader effort to translate experience from technical assistance and engagement with investees and investors into market knowledge that can support more informed investment decisions across the sustainable land-use sector.