Biochar: Accounting for carbon benefits of production and use

In this report, Cerulogy draws a distinction between stacked incentives, which Cerulogy defines as forms of multiple recognition that are intended by policymakers, and double crediting, which Cerulogy defines as forms of multiple recognition that are not intentional. Double crediting can undermine the integrity of climate change policy by giving a misleading sense of the rate of overall progress. It can also lead to inefficient allocation of capital by distorting the playing field between different decarbonisation approaches.

This report also highlights the sustainability risks, that if biomass harvesting for biochar significantly reduces standing carbon stocks, the nominal carbon storage from biochar could be entirely offset (and more). This emphasises the need for strict sustainability governance for biochar feedstocks.

To effectively manage these challenges as the biochar sector expands, this report recommends:

1. Transparent recognition: Opportunities for multiple recognition of benefits from biochar should be explicitly and transparently acknowledged, and policymakers should ensure that any multiple recognition is aligned with broader policy and climate goals.
2. Chain of custody measures: Tracking biochar from feedstock through production to end-use will ensure accurate carbon accounting.
3. Post-application monitoring: As the market develops, post-application monitoring of biochar’s long-term impacts should be undertaken to improve understanding and to support farmers to use biochar in the most effective way.