Biochar is one of the best long term solution for carbon removal. It allows for hundreds of years of guaranteed carbon removal, has a global sustainable removal capacity of up to 2 billion tons of CO2 equivalent a year, and is to date the most mature solution to be brought at scale, with already-available technology and very strong scientific backing.
One ton of biochar sequesters 3 tons of carbon dioxide, according to Chemists Without Borders, a nonprofit group of scientists combating climate change.
Carbon offset credits, or carbon allowances, can be seen as permission slips allowing the holder to emit a certain amount of greenhouse gases at a price. Credits concern tonnes of carbon dioxide equivalent (tCO2e) and carbon credit markets have been growing rapidly as the race to net zero speeds up and companies and governments commit to targets for the next few decades.
The voluntary carbon market, which allows participants to exchange credits, has attracted increased interest. It has quadrupled in value and almost doubled in volume to reach USD 2 billion in 2021, with 166 million tonnes of carbon emissions avoided or removed. The market is expected to reach between USD 10 billion and USD 40 billion by 2030.
Although biochar production can utilize a range of different feedstocks, the increase in
forest management throughout the state offers a unique opportunity to produce biochar
and carbon credits while providing a climate beneficial use for the flow of biomass from
forest restoration projects.
Two years ago a Carbon Removal Platform created and the CORC Carbon Removal Price Indexes.- CORCCHAR is the biochar carbon credit price index.
The CORC Index family is the indexes to focus exclusively on tracking the price of carbon removal from the atmosphere.
With Nasdaq in collaboration three commodity reference price indexes created, based on Carbon Removal Certificates (CORCs). The objective is to increase transparency in the carbon removal market, helping corporates understand the cost of cutting their carbon emissions and supporting more informed project financing decisions.
The Index family consists of a composite index that tracks the price of all carbon removal transactions as well as a separate index for biochar and bio-based construction materials
Carbon Removal Reference Price Index Family
March 2023 | 1-Month Change | 6-Month Change | YTD Change | ||||
Index | EUR | EUR | % | EUR | % | EUR | % |
CORCX | 174.18 | 27.08 | 18.41% | 126.37 | 264.31% | 48.61 | 38.71% |
CORCCHAR | 174.18 | 27.08 | 18.11% | 20.80 | 13.56% | 48.61 | 38.71% |
https://www.nasdaq.com/solutions/carbon-removal-platform
The main index, CORC Carbon Removal Price Index (CORCX), reflects the cost of sequestering one ton of carbon dioxide based on CORC transactions from all engineered carbon removal methods supported by the Puro Standard. The CORC Biochar Price Index (CORCCHAR) and the CORC Bio-based Construction Materials Price Index (CORCWOOD) reflect the price of carbon removal in the form of biochar, and bio-based construction materials such as wooden building elements, respectively.
CHICAGO, April 6, 2023 /PRNewswire/ — Carbon Offset/Carbon Credit Market is projected to reach USD 1,602.7 billion in 2028 from USD 414.8 billion in 2023 at a CAGR of 31.0% The Carbon Offset/Carbon Credit Market growth has been attributed to the rising global warming and the need to remove the carbon from the atmosphere. The market is driven by factors such as growing compliance requirements and regulatory schemes across the regions.
Smart Bio Energy -SBE- planning to supply most of the biochar production for biochar applications which are eligible for carbon credit.