Global biochar carbon credit prices for the US and India held steady in October despite a sharp decline in corporate retirement activity and weakening market sentiment in the fourth quarter.

Platts assessed the price of US biochar for 2025 delivery at $150/mtCO2e, steady day over day and month over month. The assessment was in line with a trade for CSI-certified credits for vintage 2025 and 1,000 mt at the assessment level for the Week of Nov. 3.

Biochar credits for next year's delivery were assessed at $148/mtCO2e, reflecting a discount due to lower buying activity and expectations of higher supply entering the market.

"There is some demand for biochar credits," a developer said, "yet I saw more activity in the third quarter of this year compared to the fourth quarter."

It is also currently challenging to obtain anything for prompt delivery, sources said.

Tech-based, or engineered carbon removal, credit retirements decreased to 3,327 metric tons of carbon credits in October, from 57,417 mt in September and 6,243 mt in October 2024.

Across the tech-based carbon removal segment -- reflecting technology projects that eliminate greenhouse gas emissions through initiatives such as biochar, mineralization, bioenergy with carbon capture and storage, and direct air capture -- BECCS and DAC credits comprised less than 1% in total retirements, compared with 86% for BECCS in September, according to Puro.earth data. Biochar credits accounted for 74% at 2,216 mt, and enhanced rock weathering credits represented 25%, or 748 mt.

Over the same period, biochar carbon credit prices rose a half a percent, mainly attributed to indications of higher demand expectations in the fourth quarter from corporates seeking to offset their emissions.

Biochar credits certified by CSI are likely to be a bit lower compared with Puro.earth and Isometric, as they are less well-known, so they have to in effect buy their way in sometimes, a second broker said with regard to the offer for over 1,000 mt C-Sink or CSI-certified credits, which traded at $150/mtCO2e.

Market expansion

Market intermediaries are pursuing smaller-scale buyers to diversify the biochar customer base beyond traditional large corporate purchasers and offtakes.

Wild Assets launched a biochar carbon credit offering targeting individual and smaller corporate buyers, providing Puro.earth-certified credits at $158/mtCO2e for 2025 vintage delivery.

"We recognized that industrial biochar is the most available and trusted CDR pathway in the market, and the idea here was to expand our audience into individuals and companies that are considering CDR but have not made big splashes," Matan Rudis, founding partner of Wild Assets, told Platts, referring to carbon dioxide removal.

"So, we allow them to make small risks," Matan added.

Despite the lower retirements over October, most biochar credits with 2024 and 2025 vintages have already been retired, according to Puro.earth carbon removal registry data as of Nov. 12, where about 44% of credits for vintage 2024 and 2025 are still not retired.

Currently, under the Isometric registry, only three biochar projects from India are in the validation stage. Yet biochar credits certified under Isometric for the US were heard offered for presale at $170/mtCO2e for vintage 2025 and over 1,000 mt.

In the Puro.earth registry, only one biochar project developed by Varaha has been actively issuing credits since October 2024, totaling 5,500 mt. About 1,700 mt of credits have been retired during this period. As new projects take time to move through validation and registration, most supply is allocated through forward delivery agreements rather than spot trades.

Platts assessed Biochar India Current Year at $135/mtCO2e Nov. 13, stable day over day as well as week over week. Biochar India Yr 01 was assessed at $125/mtCO2e, at a $10/mtCO2 discount. The backwardation in this market can be attributed to the dearth of supply of biochar credits for spot transactions.

"There are still biochar credits to be issued for this year; we will have about 10,000 mt credits from outside US origin before the end of the year," the broker said.

Credit issuance drops

Carbon credit issuances for tech-based carbon removals decreased by 73% in October, dropping to 25,673 mt from 93,523 mt in September, primarily due to the lower issuance for BECCS from the month prior. The volume of issuance also decreased by 24% year over year from October 2024, when 33,693 credits were issued.

Market participants expect an increase in the spot supply of biochar in the upcoming year as more developers enter the market and their projects come online.

An India-based developer and consultant said prospects for significant near-term investment in industrial biochar projects appear limited, largely due to the constrained voluntary participation in Indian biochar credits.

"As more projects come online and delivery becomes more consistent across the industry, there will be more consistent demand and demand from more than a couple of big-name projects," the second broker said of the latest decline in demand.

The voluntary carbon market cannot scale to gigaton levels without the integration with the compliance markets, particularly through emission trading systems and government purchases, a market source said. This presents the only significant opportunity for large-scale carbon removal, necessitating supportive policies, the second broker added.