Against the backdrop of increasingly severe global climate change, carbon removal has become the focus of attention of governments, enterprises and all sectors of society. In recent years, carbon credits, as a market-based emission reduction tool, are playing an increasingly important role. It is worth mentioning that biochar, as an effective carbon fixation technology, is gradually being incorporated into the carbon credit system.
Background on Carbon Removal
Global Climate Change Current Situation
Climate change is one of the most important environmental issues facing the world today. Excessive emissions of greenhouse gases (GHG), especially carbon dioxide (CO₂), are the main cause of global temperature rise. Industrialization, energy consumption, agricultural activities and deforestation are the main sources of greenhouse gas emissions. Climate change not only leads to frequent extreme weather events, but also has a profound impact on ecosystems, biodiversity and human socio-economy.
International Carbon Removal Goals
Facing the severe challenge of climate change, the international community has promoted carbon removal actions through multiple agreements and initiatives. The most representative one is the Paris Agreement reached in 2015. The agreement aims to limit the global average temperature rise to no more than 2°C above pre-industrial levels and strive to limit it to 1.5°C. The signatory countries have formulated their own carbon reduction commitments and targets (NDCs) based on their own conditions to achieve the overall goal of the Paris Agreement.
Interpretation of the Concept of Carbon Credit
Origin of Carbon Credit
The concept of carbon credit originated from the Kyoto Protocol. This is the first international agreement to introduce a carbon trading mechanism. The Kyoto Protocol established the “Clean Development Mechanism” (CDM). This policy allows developed countries to obtain carbon credit by investing in emission reduction projects in developing countries, thereby meeting their own emission reduction targets. With the global attention to climate change, the carbon credit mechanism continues to develop. Now it has become an important part of the global emission reduction system.
What is Carbon Credit
Carbon credit is tradable certificates that represent greenhouse gas emission reductions. Specifically, one carbon credit is equivalent to one ton of CO₂ equivalent emission reduction. There are generally two ways to obtain carbon credit:
- Enterprises obtain carbon credit by reducing their own greenhouse gas emissions.
- Enterprises obtain carbon credit by investing in projects that can absorb or reduce greenhouse gases (such as afforestation, biochar production, etc.).
The carbon credit can be traded in the carbon market and used to offset emissions from other production processes. Thus, this achieves the overall emission reduction target.
The significance of Carbon Credit
Carbon credit transforms emission reductions into economic incentives through market mechanisms, encouraging enterprises and countries to take practical actions to reduce greenhouse gas emissions.
- For Enterprises: Carbon credit provides a flexible way to achieve emission reduction targets, either by reducing emissions through their own improvements or by purchasing carbon credit to make up for the excess.
- For Countries: The carbon credit mechanism promotes technology transfer and international cooperation, contributing to global emission reduction efforts. In addition, it also plays an important role in promoting the development of a global low-carbon economy.
Powerful Carbon Removal Capacity of Biochar
The Production Process of Biochar
Biochar is a stable carbon material prepared by pyrolysis of organic matter (such as crop waste, forestry residues, etc.) under anoxic conditions. The biomass pyrolysis process not only produces biochar, but also recovers heat energy and biogas. Thus, this achieves efficient utilization of resources. Biochar can exist in the soil for a long time due to its highly stable carbon structure, effectively fix carbon elements, and reduce the CO₂ concentration in the atmosphere.
Why Biochar can Sequester Carbon?
The stability and durability of biochar in the soil are the key to its carbon sequestration ability. The porous structure and high carbon content of biochar make it difficult for microorganisms to decompose it in the soil. Therefore, carbon elements can be fixed for a long time. In addition, the application of biochar can also improve the physical and chemical properties of the soil. For example, it increases the organic matter content of the soil, improves the water retention capacity of the soil and the efficiency of nutrient supply. This further enhances carbon sequestration capacity by promoting plant growth.
Link between Biochar and Carbon Credit
Role of Biochar in Carbon Credit System
Biochar projects have become an important part of the carbon credit system through their significant carbon sequestration capabilities. Specifically, biochar projects can conduct carbon credit trading through the following steps:
- Project Design & Implementation: Select appropriate raw materials and production processes to ensure efficient production and application of biochar.
- Calculation of Carbon Sequestration: Calculate the amount of carbon sequestered by biochar projects based on scientific methods, including emissions reduced during the production process and carbon fixed in the soil.
- Certification & Verification: A third-party agency conducts a biochar production life cycle assessment. This will certify and verify carbon sequestration to ensure it is real, quantifiable and verifiable.
- Generation & Trading of Carbon Credit: Certified carbon sequestration is converted into carbon credits and traded in the carbon market.
Benifits of Obtaining Carbon Credit from Biochar Production Projects
Biochar production projects have multiple advantages in the carbon credit system:
- Biochar enables long-term stable carbon storage, typically remaining in the soil for decades to hundreds of years.
- Biochar projects not only sequester carbon but also provide multiple environmental benefits, such as improving soil quality, increasing agricultural productivity and reducing greenhouse gas emissions.
- The scalability and diversity of biochar production equipment make it suitable for applications in different regions and at different scales.
These combined benefits enhance the overall value of a biochar project, making it more attractive in the carbon credit market.
Which Biochar Production Projects can Earn Carbon Credits?
Agriculture & Food Processing Waste Pyrolysis Project
Some cash crop cultivation & processing wastes, such as rice husk, coconut shell, sugarcane bagasse, etc., are often burned or abandoned after harvest. Biochar production not only realizes the resource utilization of waste. Also, this fixes a large amount of carbon elements and reduces greenhouse gas emissions. This type of project is suitable for promotion in agriculturally developed areas and has high operability and economic benefits.
Wood & forestry By-product Pyrolysis Project
Wood & forestry activities generate large amounts of wood processing residues such as sawdust, branches and wood processing waste. Converting them into biochar through a wood pyrolysis plant not only effectively utilizes resources, but also achieves long-term carbon sequestration. In addition, such projects can promote the recycling of wood & forestry waste. Therefore, this enhances the sustainability of forest resource management.
Projects Integrating Renewable Energy
Pyrolysis technology doesn’t just produce biochar. Meanwhile, it can also recover heat energy and biogas. Typically, they are used to generate electricity or heat. This recycling of energy increases the overall energy efficiency and economics of biochar projects. Additionally, incorporating renewable energy for biochar production can further reduce the project’s carbon footprint. This enhances its competitiveness in the carbon credit market.
Future Prospects of Carbon Credit Market
Overview of Current Carbon Credit Market
The global carbon credit market is developing rapidly, with major markets including the EU carbon market, China carbon market, California carbon market, etc. The EU carbon market is currently the largest carbon trading system, covering multiple industries and fields. Since China launched the national carbon market in 2017, it has gradually expanded its coverage and trading volume, becoming the world’s second largest carbon market. Other countries and regions are also actively exploring and establishing their own carbon trading mechanisms to promote the diversification and internationalization of the global carbon credit market.
Market Drivers
The rapid development of the carbon credit market is driven by a variety of factors:
- First, governments around the world have introduced policy support and regulatory promotion, set carbon emission targets and carbon pricing mechanisms, and enhanced the institutional guarantee of the carbon market.
- Second, the improvement of corporate social responsibility awareness and the increase in market demand for low-carbon products have prompted more companies to participate in carbon trading and drive the growth of carbon credit demand.
In addition, international cooperation and technological innovation have also provided strong support for the development of the carbon credit market.
Future Challenges and Opportunities
Although the carbon credit market has broad prospects, it still faces some challenges:
- Market standardization and transparency issues need to be addressed urgently.
- Differences in standards across regions and markets may limit the mutual recognition and trading of carbon credits.
- Emerging markets need to overcome issues such as insufficient infrastructure, uneven technology levels, and the need to upgrade biochar machine.
However, these challenges also provide opportunities for innovation and cooperation. Through international cooperation and technical exchanges, the unification of market standards and the popularization of technology can be promoted, further promoting the global development of the carbon credit market.
Write at the End
As an efficient carbon sequestration technology, biochar plays an important role in carbon credit trading. The global carbon credit market is constantly developing and the technology is constantly innovating. In this process, biochar projects will play a more important role in future carbon removal efforts. In order to achieve the goal of sustainable development, the government, enterprises and all sectors of society should strengthen cooperation to promote the application of biochar technology and the improvement of the carbon credit market.