Biochar’s Role in India’s Emerging Carbon Market

India is preparing to launch its carbon market in 2026. Biochar, a carbon-rich charcoal made from agricultural and organic waste, is poised to be a key technology for carbon removal. It offers a sustainable way to manage waste and reduce greenhouse gases. Its success depends on the involvement of multiple sectors and stakeholders.

Biochar Production Potential in India

India produces over 600 million tonnes of agricultural residue and 60 million tonnes of municipal solid waste annually. Much of this is either burnt openly or dumped, causing pollution and emissions of methane, nitrous oxide, and CO₂. Using just 30-50% of this surplus waste, India could create 15-26 million tonnes of biochar each year. This could remove about 0.1 gigatonnes of CO₂-equivalent annually, contribution to climate goals.

Byproducts and Energy Generation

Biochar production also yields syngas and bio-oil. Syngas could generate 8-13 terawatt-hours of electricity annually, about 0.5-0.7% of India’s total electricity. This could replace 0.4-0.7 million tonnes of coal. Bio-oil could offset 12-19 million tonnes of diesel or kerosene use, reducing fossil fuel imports and cutting over 2% of India’s fossil-fuel emissions.

Biochar as a Carbon Sink

Biochar stores carbon in soil for 100 to 1,000 years due to its stable nature. It improves soil health by enhancing water retention and organic carbon content. This helps reduce nitrous oxide emissions by 30-50%, a potent greenhouse gas with 273 times the warming impact of CO₂. Modified biochar can also capture CO₂ from industrial gases, though this is less efficient than other methods.

Applications Across Sectors

In agriculture, biochar improves soil fertility and water retention, boosting crop yields by 10-25% and lowering fertiliser needs by 10-20%. In construction, adding biochar to concrete increases strength and heat resistance while capturing CO₂. In wastewater treatment, biochar can treat large volumes of water cost-effectively, addressing the issue of untreated wastewater in India.

Challenges to Biochar Adoption

Despite its promise, biochar faces hurdles. There is no standardised market for feedstock or consistent carbon accounting methods. This lowers investor confidence. Other barriers include limited resources, evolving technologies, weak policy support, and lack of coordinated frameworks across agriculture, energy, and climate sectors. Awareness among stakeholders remains low.

Policy and Market Integration

To scale biochar use, India needs sustained research and development. This includes creating region-specific standards and optimising biomass use based on local conditions. Biochar should be integrated into crop residue management, bioenergy initiatives, and state climate action plans. Recognising biochar in the carbon market will attract investment and generate income for farmers through carbon credits.

Economic and Environmental Benefits

Deploying biochar production at the village level could create around 520,000 rural jobs. This links climate action with rural economic growth. Additional benefits like improved soil health, reduced fertiliser use, and higher crop yields should be factored into policies and markets to maximise biochar’s potential.

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