Verra's biochar and integrated forestry management (IFM) methods are endorsed by ICVCM as credible solutions for combating climate change.
In a significant move towards enhancing trust in nature-based solutions and the carbon markets, the Integrity Council for the Voluntary Carbon Market (ICVCM) has endorsed five carbon credit methodologies. Among these, three are for biochar and two are for Improved Forest Management (IFM).
Biochar, a carbon-rich, porous, and stable form of charcoal, is produced through pyrolysis—the thermal decomposition of organic biomass in low-oxygen conditions. This biomass can include agricultural residues, forestry waste, urban biomass, and animal manure. Once added to soil, biochar can persist for hundreds to thousands of years, acting as a long-term carbon sink by locking carbon that would otherwise be released as greenhouse gases.
The ICVCM's endorsements signal a focus on accuracy, transparency, and accountability in the voluntary carbon market. For instance, the CAR - U.S. and Canada Biochar (Version 1.0), Isometric Biochar Production and Storage (Version 1.0), and Verra VM0044 Biochar Utilization in Soil and Non-Soil Applications (Version 1.2) methodologies have all received the ICVCM's seal of approval.
Under the Isometric methodology, 25 projects are registered, expected to produce 500,000 credits in 2026. On the other hand, no credits have yet been issued under Verra VM0044, but three projects are registered, forecasted to deliver 249,000 credits annually.
In the realm of IFM, the ICVCM has endorsed two new methodologies: Verra VM0045 and ACR - IFM on Non-Federal U.S. Forestlands (Version 2.1). The CAR Mexico Forest Protocol (Version 3), although receiving conditional approval, has raised uncertainty about how many credits will qualify for the CCP label after changes are implemented.
The CCP label, acting as a global benchmark for high-quality carbon credits, provides buyers with a simple, trustworthy way to identify credits with real climate impact. The conditional approval of the CAR Mexico Forest Protocol has contingencies, including revising leakage values and committing to a minimum 40-year permanence.
Projects under ACR IFM that lower total wood product output compared to the baseline must apply a 10-20% leakage deduction. Leakage refers to the risk that reduced timber harvesting in one area causes increased harvesting elsewhere. The ACR Improved Forest Management methodology includes rules to address this issue.
Biochar, with its ability to combine soil regeneration, waste management, and durable carbon storage, is increasingly recognised in carbon markets as a high-integrity climate solution with rapidly growing demand for associated carbon credits. Its environmental and economic potential is reflected in the doubling of demand for biochar carbon credits every year for the past two years.
By locking carbon in a stable form, biochar reduces atmospheric CO2, making it a scalable and durable climate mitigation tool. Moreover, biochar enhances soil structure, increases water retention, and improves nutrient holding capacity, which reduces the need for synthetic fertilizers and boosts crop yields. Additionally, producing biochar converts organic waste that might otherwise decompose or be burned into a valuable product, preventing open-field burning and methane release, while also generating renewable energy co-products like syngas and bio-oil.
In nature-based climate solutions, biochar serves multiple important roles, including carbon sequestration, soil health improvement, waste valorization, and supporting sustainable agriculture. Its combination of these benefits positions biochar at the forefront of nature-based solutions tackling climate change.
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