The biochar carbon removal (BCR) market is undergoing a rapid transformation in 2025, with demand surging to unprecedented levels. In just the first six months of the year, companies contracted 1.6 million tonnes of biochar credits—more than the combined totals of 2022 and 2023. Data from CDR.fyi shows that since the beginning of 2022, overall contracted volumes have surpassed 3 million tonnes.
Close-up of a hand holding biochar, with a city skyline with modern office buildings and green parks in the background. AI generated picture.
This surge has been amplified by a landmark transaction: Microsoft’s 1.24 million-tonne offtake agreement. The deal made the second quarter of 2025 the most active period on record for BCR purchases and underscored the rising importance of large-scale commitments in shaping the market.
Technology and financial institutions are playing a pivotal role in driving biochar adoption. Together, Microsoft, Google, Boston Consulting Group, and JPMorgan account for 57% of all BCR purchases to date. Microsoft alone represents nearly half of the global total, placing it at the forefront of corporate-led carbon removal.
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Financial players have also embraced biochar with conviction. Firms such as Swiss Re, Nasdaq, SEB, and Tide Platform have concentrated their strategies almost entirely on biochar. Their reliance reflects confidence in the method’s durability, verifiable outcomes, and additional benefits such as soil improvement.
Biochar’s appeal lies in its practicality—it is cost-effective, scalable, and immediately deployable. Since 2022, nearly 300 unique buyers have entered the market, a figure five times higher than that of enhanced weathering, the next most popular carbon removal approach. For many new participants, biochar has become the entry point into the broader carbon removal sector.
The financial growth has been equally remarkable. The market’s value has expanded from $14.6 million in 2022 to over $181 million in 2024, reflecting a compound annual growth rate of more than 130%. With such momentum, biochar is positioned as the first major growth story in carbon removal.
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As corporates and financiers race to secure durable, verifiable removals—with biochar now setting the pace—the bar for integrity and transparency keeps rising. That makes project selection decisive: Buyers need carbon units with proven permanence, robust MRV, and tangible co-benefits that support real decarbonisation. At Green Earth, we develop premium, nature-based projects that restore ecosystems, enhance biodiversity, and uplift local communities—backed by end-to-end oversight and clear, transparent reporting, so every tonne delivers measurable environmental and reputational value. Ready to align your strategy with high-impact credits?
