The biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More industry stands at a critical inflection point, where biochar-specific and carbon market frameworks are creating opportunities for new developments, game-changing incentives, and growth. At the same time, regulations and opportunities come with challenges – it’s hard to figure out which standards  are relevant to YOUR specific project, what’s required to meet those standards, and the most efficient way to seize these exciting opportunities.

In this article, we break down the major regulations that are relevant to biochar producers, with a focus on North America. This means everything from local, regional, and federal regulations, tax credits, permitting standards, while also sharing some new global carbon credit requirements. Read on if you’re interested in learning more about the state of biochar regulations.

U.S. Tax Credits

The Inflation Reduction Act updated Section 45Q tax credit for carbon sequestration and utilization, changing the game for permanent storage project economics. Unfortunately, no one has to date successfully claimed the 45Q credit for a biochar project.

In November 2024, a new tech-neutral CDR bill was proposed, creating a potential $250/ton CO2e incentive for all carbon removal projects. 

What to expect in 2025: We’re not holding our breath for new tax credits given the Trump administration’s repeated statements against the IRA. However, we don’t expect major clawbacks of the existing tax credits, many of which have bipartisan support. 

EPA Standards

The EPA has regulations that apply at the federal, state, and local levels. While each regulation could warrant its own blog post, there was a major update this September that will likely have continued impacts in 2025. Earlier this year the EPA issued guidance that biochar production from clean cellulosic biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More is EXCLUDED from Other Solid Waste Incineration (OSWI) Clean Air Act (CAA) regulations. This classification is expected to simplify air permitting for biochar producers across the United States

What to expect in 2025: continued simplification of permitting and potentially looser regulations on new site development due to the red trifecta. 

Voluntary Carbon Market: Emerging Global Verification Standards

The voluntary carbon market has become a critical arena for biochar producers, with several key methodologies and verification frameworks that producers can choose from: 

• Puro.earth has distinguished itself as the most commonly used methodology for industrial / continuous flow biochar projects
• Climate Action Reserve (CAR) has recently developed its own biochar methodology, although it is in early stages of implementation
• Isometric has also published a rigorous methodology, with strong emissions monitoring and reporting requirements.
• Carbon Standards International maintains both a biochar standard (recently collaborating with International Biochar Initiative, IBI). They also have a C-Sink carbon credit methodology that is well-suited for kontiki kiln projects
• VERRA has a flexible methodology for kontiki or industrial projects but has seen limited uptake

What to expect in 2025: 

• Methodology changes that make many of the above standards more rigorous and specific in response to many prior years of voluntary market misgivings
• Increased focus on documentation and reporting (often referred to as monitoring, reporting, and verification – MRV)
• Some progress on implementing Article 6.4, which was ratified at COP this year: ideally some indication of which carbon credit methodologies are eligible for the global trading scheme

Choosing the right fit carbon credit methodology is extremely important for producers – there are tradeoffs regarding cost, timeline, price of credits, and more. It is worthwhile to partner with organizations who specialize in this space to ensure you’re maximizing the opportunities of your project, especially as the landscape changes. 

USDA NRCS Conservation Practice Standard 336 for Biochar

The Natural Resources Conservation Service (NRCS) has developed Conservation Practice Standard 336 as a comprehensive approach to integrating biochar into agricultural and conservation practices. This standard represents the USDA’s first effort to provide clear guidance for biochar production, application, and environmental management.

The standard addresses a critical need for consistent guidelines in an emerging field. By establishing specific criteria, the NRCS aims to help agricultural producers understand how to effectively and responsibly use biochar as a soil amendmentA soil amendment is any material added to the soil to enhance its physical or chemical properties, improving its suitability for plant growth. Biochar is considered a soil amendment as it can improve soil structure, water retention, nutrient availability, and microbial activity.   More and carbon sequestration tool.

Key aspects of the NRCS 336 standard include:

• Production Guidelines
• Application Criteria
• Environmental Assessment

While the standard is not a mandate, it serves as an important reference point for producers looking to integrate biochar into their agricultural practices. As research continues to demonstrate the potential benefits of biochar, the NRCS 336 standard offers a structured approach to understanding and implementing this technology.

What to expect in 2025: it’s not entirely clear how the Farm Bill and USDA funding will shake out next year, but we can expect to see biochar at the forefront of conversations on funding for agricultural inputs.

European Regulatory Landscape: CRCF Takes Center Stage

The Carbon Removal Certification Framework (CRCF) represents a landmark regulatory development for European biochar producers. Expected to be fully implemented in 2025, this comprehensive framework will fundamentally transform how carbon removal technologies are evaluated and certified across the European Union. The CRCF goes beyond previous regulatory approaches by:

• Establishing rigorous, standardized certification standards
• Creating a unified approach to carbon removal verification
• Providing clear, detailed guidelines for biochar production
• Implementing sophisticated carbon accounting mechanisms

What to expect in 2025: a timeline for implementation and a standard set that other global markets can follow! 

Takeaways

The evolving regulatory landscape presents a complex but promising terrain for biochar producers. Those who can demonstrate technical excellence, maintain transparent production processes, and provide detailed, verifiable carbon reporting data will be best positioned to thrive. Success will require a multifaceted approach that combines scientific rigor, technological innovation, and strategic regulatory navigation.

As we move into 2025, the biochar industry stands at a critical juncture. The regulatory frameworks emerging globally represent a maturation of our approach to carbon removal technologies. Navigating this landscape will require adaptability, technical expertise, and an unwavering commitment to sustainable carbon sequestration practices.

It’s more important than ever to have a partner who helps you navigate this landscape. Learn more about Offstream’s complete biochar and carbon compliance platform.

Disclaimer: Regulatory landscapes are inherently complex and subject to rapid change. Producers should consult with legal and environmental experts for the most up-to-date guidance specific to their operational context.

Varsha Ramesh Walsh is the CEO at Offstream. She’s a climate vet with business development, strategy, and operations experience. Prior to founding Offstream, she worked as a project developer at Indigo Ag, at carbon credit marketplace, Patch, and as an independent consultant to projects trying to navigate compliance challenges.