A Nuffield Australia and GRDC Scholar report by Paul McGorman details how Australian agricultural enterprises can generate three revenue streams from on-farm biochar pyrolysis. The research suggests that modern pyrolysis systems can produce carbon sequestration credits, thermal or electrical energy, and soil enhancement products. Realising these gains requires careful operational planning, managing significant capital expenditure, securing consistent biomass feedstocks, and navigating variable energy markets. The report provides a framework for Australian growers to assess the commercial viability of biochar production.
Sylvera, in partnership with the Integrity Council for the Voluntary Carbon Market (ICVCM), released a report detailing the median levelised cost of creating a carbon credit, based on data from 53 projects. The report found significant cost divergence across project types, ranging from $6 for REDD+ credits to $185 for biochar credits. These costs are influenced by capital expenditure (CapEx) and operating expenditure (OpEx), with the cost of capital identified as a major source of uncertainty, particularly for nature-based solutions. For instance, a change in the cost of capital from 10% to 15% could increase ARR project costs by 36.84%. The study aims to enhance transparency for buyers, developers, and policymakers regarding genuine delivery costs and fair benefit-sharing.
Verra has completed its latest review of 42 Methodology Idea Notes (MINs), selecting two proposals to advance to the feasibility assessment stage within the Verified Carbon Standard (VCS) Programme. The selected methodologies are M0343, a revision to VMR0017 for grid-connected renewable electricity generation, and M0490, for quantifying non-fossil carbon stock in long-term product pools. Verra prioritises proposals with high climate mitigation potential (over 500,000 tCO2e within five years), broad applicability, and sustainable development benefits. The review process is part of the revised Methodology Development and Review Process (MDRP) under version 5 of the VCS Programme.
InPlanet, Idemitsu, CFC, and Carbon Removal Partners have co-authored a white paper, 'Closing the Climate Financing Gap', proposing revenue financing as a solution to scale carbon dioxide removal (CDR) projects. The paper draws on a transaction where Idemitsu provided financing to InPlanet for enhanced rock weathering (ERW) CO2 removals, with CFC acting as insurer. This structure allows developers to access non-dilutive financing against contracted future payments, addressing the timing mismatch between upfront investment and later credit delivery. The authors suggest that effective revenue financing requires bankable offtake agreements, credible delivery capabilities, and appropriate risk-transfer mechanisms.
Verra has opened public comment periods for ten new projects seeking registration under its Verified Carbon Standard (VCS) and Climate, Community & Biodiversity (CCB) programmes. The projects include a range of activities such as mangrove conservation, REDD+, agroforestry, marine food waste recovery, and wind power across Sierra Leone, Malawi, Kenya, India, Tanzania, and Argentina. Public comment periods for these projects opened between October 19 and October 26, 2026, with closing dates ranging from November 15 to November 20, 2026. This process ensures transparency and allows stakeholders to assess whether projects meet programme requirements before final validation.
Climate non-profit Terraset has committed over $2 million to projects designed to attract additional financing, using advance purchases and other arrangements. New investments include wastewater treatment developer Airbuild, methane abatement company Frost Methane, and biochar producer Tellus Conservation. Terraset aims for its funding to unlock larger commitments, citing a return of six dollars in additional capital for every dollar deployed. The projects target benefits beyond emissions reductions, such as cleaner water and funding for Ukrainian national parks.
The United States biochar market is projected to grow from USD 602.2 million in 2025 to USD 1,514.5 million by 2034, at a compound annual growth rate of 10.50%, according to an IMARC Group report. This expansion is driven by increasing interest in regenerative agriculture, organic farming, and verified carbon sequestration programmes. Despite challenges like low consumer awareness and high production costs, companies are scaling production through advanced techniques and securing public grants. Long-term corporate carbon removal contracts, such as those with Microsoft, are providing essential financial validation and market certainty for biochar producers.
Treehouse California Almonds and Sitos Group have established a $9 million slow pyrolysis biochar manufacturing facility in Delano, California. The 25,000 square foot plant will convert almond hulling and shelling co-products into biocarbon. It is designed to process 6,000 pounds of almond shell feedstock per hour using three integrated slow-pyrolysis units. The facility aims to manage agricultural residues, produce soil amendments, and generate verifiable carbon removal units, while also converting waste thermal energy into electricity for the local grid.
Citi has closed a $72 million, 3.5-year principal-protected Carbon Removal-Linked Note to finance Applied Carbon’s industrial biochar operations in Texas. This structure, with institutional investment from Nuveen and a pre-existing Microsoft offtake agreement, links investor returns directly to verified carbon credit delivery. The financing aims to bridge the capital gap for early-stage carbon removal developers, enabling Applied Carbon to expand its mobile pyrolysis units. This transaction establishes a precedent for integrating corporate sustainability commitments with institutional fixed-income markets to fund carbon sequestration projects.
Sylvera has updated its carbon credit project ratings to ensure they reflect the latest vintages and methodological improvements. The firm noted that buyers increasingly prioritise up-to-date information, with many aiming to match credit vintage years to retirement schedules, typically within a three-year buffer. Sylvera's project pages now display vintage coverage, rating date, and framework version to provide transparency on the recency and scope of assessments. This move addresses buyer demand for current evidence, especially as projects transition to stronger methodologies like Verra's VM0050 for cookstoves, which has a median Sylvera rating of BBB compared to B for the legacy VMR0006.
Carbon180 has released 'Restoring Carbon for Healthy Agricultural Lands', a federal policy roadmap for integrating carbon removal into US agriculture. The report, informed by input from over 200 land stewards, scientists, and technical service providers, advocates for biogenic carbon pathways to address agricultural carbon debt. It aims to rebuild USDA capacity and shape farm policy to prioritise soil health and carbon restoration. The initiative seeks to reverse soil degradation, which has caused an estimated $2.8 billion in annual economic losses in the Corn Belt alone due to reduced crop yields.
The Integrity Council for the Voluntary Carbon Market (ICVCM) has launched a public consultation on proposed clarifications to its Core Carbon Principles (CCP) Assessment Framework. The consultation, open until 3 December 2026, focuses on how the ICVCM assesses the independence of a carbon-crediting programme's board and how programmes demonstrate safeguards for the rights of Indigenous Peoples and local communities. These clarifications aim to ensure a consistent integrity threshold as the ICVCM prepares to assess a wider range of programmes, including those administered by governments. The consultation seeks to clarify existing requirements and does not alter the general process for future clarifications.
Global carbon dioxide removal (CDR) currently stands at approximately 2.2 billion tonnes of CO2 per year, representing 5% of gross global emissions. Conventional methods, primarily forests and soils, account for 99.9% of this volume, while novel CDR methods contribute about 0.002 billion tonnes annually. The Science Based Targets initiative's (SBTi) new net-zero standard mandates that only removals can neutralise residual emissions, shifting the focus for companies towards acquiring durable removal credits. Prices for nature-based removals range from USD 10-30, whereas durable removals like biochar and direct air capture with storage (DACCS) command prices upwards of USD 135 and USD 500 respectively, reflecting their scarcity and long-term storage capabilities.
Blue carbon credits originate from projects that conserve or restore coastal ecosystems, primarily mangroves, seagrass meadows, and tidal salt marshes. These ecosystems are notable for storing substantial carbon volumes in their waterlogged soils; mangrove forests, for example, can hold up to four times more carbon per hectare than other tropical forests. Each credit represents one tonne of CO2 equivalent, certified by standards such as Verra. Most current blue carbon credits derive from mangrove projects, which can involve both restoration for removals and conservation for avoided emissions. The main Verra methodology for tidal wetland and seagrass restoration is VM0033.
Regreener has released a glossary defining 60 key terms relevant to the voluntary carbon market, aimed at helping buyers understand carbon credits. The resource explains concepts such as additionality, baseline, permanence, leakage, double counting, vintage, and retirement. It clarifies that a carbon credit represents one tonne of CO2 equivalent, certified by an independent standard and recorded in a public registry. The glossary aims to address confusion arising from specific market terminology.
The International Emissions Trading Association (IETA) has published a paper recommending that governments implement 'safe harbour' mechanisms to protect companies using carbon credits from greenwashing litigation. The paper, commissioned by The Coalition to Grow Carbon Markets, suggests approaches for a legal defence against allegations of false advertising or misrepresentation when corporates use high-integrity credits alongside decarbonisation efforts. IETA argues that current litigation risk suppresses demand for high-integrity credits and that safe harbour provisions could clarify permissible claims and eligible credit types. This initiative aims to increase corporate confidence and private investment in voluntary carbon markets by reducing legal uncertainty.
Swiss carbon dioxide removal (CDR) startup Tivano has received a CHF 500,000 ($606,000) grant from REPIC to scale its terrestrial biomass storage operations in Namibia. The funding will transition Project Dragonfly from a demonstration facility to large-scale deployment and support the construction of a dedicated carbon storage vault for Project Butterfly. Tivano's model involves removing encroaching woody vegetation from Namibian savannas and sealing it in underground vaults to prevent decomposition and carbon release. The initial phase of Project Dragonfly restored 120 hectares, sequestered over 1,000 tonnes of CO2, and issued 1,049 certified carbon removal credits under Puro.earth. This grant enables Tivano to establish a commercially viable framework combining durable carbon removal with ecological restoration.
Sylvera has advised carbon credit buyers to verify which vintages a project's rating covers, noting that ratings reflect the evidence available at the time of assessment. A rating formed in 2024 might cover 2018–2024 vintages, but not subsequent ones, until updated. The company highlights that project characteristics, such as methodology, baselines, and technology, can change between vintages, impacting credit quality. For example, cookstove projects are transitioning from the VMR0006 methodology to VM0050, which the ICVCM has approved as meeting Core Carbon Principles. Sylvera's project pages now flag the rating date, framework version, and vintage coverage to enhance buyer due diligence.
Carbonmark has published a guide for businesses on purchasing carbon credits, detailing how to determine quantities, evaluate quality, and manage costs. The platform states that small to mid-sized companies typically retire between 100 and 2,000 tonnes per order, with minimum purchases as low as 0.001 tonnes. Current prices on Carbonmark as of 20 October 2026 range from $0.35 for renewable energy credits to over $900 for blue carbon. The guide emphasises the importance of retiring credits for an offset to be valid and provides methods for calculating emissions, including direct integration with carbon accounting tools. It also outlines payment options and the details provided on retirement certificates.
CDR.fyi has released a new section of its Buyer's Guide detailing four types of carbon removal purchase agreements: spot, forward, pre-purchase, and offtake. The guide explains how each structure works, who carries the risk, and when to use them, aiming to help purchasers identify suitable agreements. This initiative addresses the significant gap between contracted and delivered durable carbon removal, with only 1.7 million tonnes of 50.5 million contracted tonnes delivered as of October 2026. The publication provides examples of real deals for each structure, such as SAP and Climeworks for spot, and Microsoft and North Star Carbon Solutions for offtake. Understanding these structures is crucial for scaling the market by providing buyers with certainty and suppliers with bankable commitments.
Verra has released its Grievance Redress Process v2.0, replacing the previous v1.2 policy, to streamline the handling of concerns raised with the organisation. The updated process introduces a new Grievance Intake Form via the Verra Project Hub, specifying required information for submissions. It also clarifies Verra's role, the scope of the process, and potential outcomes. A supporting flowchart is available to guide stakeholders through the submission and resolution steps.
Verra has opened a public comment period for projects seeking registration across its standards programmes, inviting feedback until 19 October 2026. This process allows stakeholders to assess if projects meet programme requirements, ensuring transparency and rigour in the VCM. All comments received will be published on the Verra Registry and must be addressed by project proponents. Project descriptions and associated documents have not yet undergone Verra's review.
Indonesia has issued Minister of Agriculture Regulation No. 18 of 2026, establishing a formal governance framework for agricultural carbon credit projects in rice cultivation, livestock, and plantations. The regulation mandates that project developers enter into binding agreements with local farming communities, requiring collaboration with a minimum of three farmer organisations. These partnerships must include free, prior, and informed consent, written agreements, and flexible benefit-sharing arrangements based on project metrics. The framework also outlines technical requirements for project certification and registration in Indonesia's national carbon registry, the Sistem Registri Unit Karbon. This aims to integrate smallholder farmers into carbon markets and ensure equitable compensation.
The upcoming North American Biochar Conference, hosted by the American Biochar Institute and U.S. Biochar Coalition, will focus on transitioning the biochar sector beyond its reliance on carbon credit markets. For over 15 years, the industry's growth has been closely tied to carbon accounting and offset registries. However, the conference aims to address market fragmentation, inconsistent product quality, and the need for robust industrial standards, moving away from a singular focus on carbon credits as the primary financial instrument. This shift seeks to ensure long-term sustainability and address growing scrutiny over potential greenwashing in biochar projects.
The Integrity Council for the Voluntary Carbon Market (ICVCM) has highlighted the role of high-integrity carbon markets in achieving global biodiversity targets, specifically the '30x30' goal to protect 30% of land and oceans by 2030. The ICVCM noted that current funding for biodiversity protection, at approximately $24 billion annually, falls significantly short of the estimated $100-180 billion needed. It suggested that the voluntary carbon market could channel $100 billion annually to nature-based solutions by 2050. The council cited Mombak's Reforesting the Brazilian Amazon Project 1, which aims to restore 27,000 hectares, as an example of a project generating carbon removals and biodiversity benefits, supported by a $19 million Fundo Clima loan and a $36 million World Bank bond.
The African Tech Futures Lab released a report outlining selective carbon dioxide removal (CDR) strategies for Africa, advocating for location-specific approaches to attract climate finance and stimulate employment. The report identifies biochar and enhanced rock weathering as promising for localised experimentation due to lower infrastructure demands and co-benefits for soil health. It highlights challenges including externally controlled carbon markets and a shortage of local technical capacity and monitoring systems. The study recommends governments evaluate technologies based on local resources and national development priorities, rather than relying solely on carbon removal. Kenya's Rift Valley is noted as an early hub for direct air capture due to geothermal energy and geological formations.
The International Emissions Trading Association (IETA) has released a Buyers' Guide to Digital MRV, detailing how digital tools are transforming carbon credit monitoring, reporting, and verification processes. The guide explains that digital MRV (dMRV) shifts from periodic, manual data collection to continuous, time-stamped data from sensors and remote sensing. This can improve cost efficiencies, enable more frequent credit issuance, and help identify project risks earlier. It also highlights ongoing dMRV pilots within crediting programmes and standardisation efforts by the World Bank, ICVCM, and ISO to ensure consistency across the market.
Frontier, a corporate-backed carbon removal buyers' coalition, has signed an $11.7 million offtake agreement with 44.01 to purchase 20,932 tonnes of carbon removal. The deal, Frontier's first for in-situ mineralisation technology, will support trials in the UAE to convert biogenic CO2 into solid minerals underground. Deliveries are scheduled between 2028 and 2031, aiming to demonstrate continuous operations and assess commercial viability. This agreement seeks to bridge the gap between demonstration projects and commercial deployment for this permanent carbon storage method.
Sylvera's Q3 2026 data indicates that carbon credit vintage is a primary driver of price, with 2025 vintage ARR credits selling for an average of $25.32, nearly three times the $9.10 paid for 2018 vintages. This premium for newer vintages is not universal across all project types, with some showing no significant difference or even a discount for more recent credits. Buyers increasingly prioritise recent vintages (past three to five years) due to evolving integrity standards, eligibility for compliance markets like CORSIA (2021–2026 window), and the need to demonstrate current climate impact. The vintage premium is most pronounced in IFM, REDD+, and ARR projects, while renewables and cookstoves show less correlation or even a decline in value for newer vintages.
Sylvera's Q3 2026 data indicates significant regional price disparities for carbon credits, with ARR credits averaging $30.35 in Europe but only $9.88 in Asia. Nature-based removal credits, such as ARR and IFM, show the widest price spreads across regions, with IFM ranging from $6.68 in Asia to $25.57 in Europe. Conversely, REDD+ and cookstove credit prices exhibit minimal regional variation, averaging between $7.02 and $8.15. Project location influences risk, natural potential, and market access, affecting a project's commercial prospects and its eligibility for markets like Article 6 and CORSIA. Africa leads in ARR project quality, with 73% of rated projects achieving BBB or higher.
Sylvera's Q3 2026 analysis of carbon credit ratings reveals that additionality is the most significant factor distinguishing high-quality projects (rated BBB and above) from lower-quality ones (BB and below). For instance, ARR projects rated BBB and above averaged 4.2 for additionality, compared to 1.9 for those rated BB and below. While a strong Carbon Score is necessary, it does not consistently correlate with higher ratings, and permanence is most critical in projects with high reversal risk, such as biochar. This differentiation in quality is reflected in pricing, with BBB and above ARR credits averaging $23.47, nearly double the $12.80 for BB and below credits.
Groundwork BioAg's Rootella Carbon programme, which uses mycorrhizal inoculants for carbon dioxide removal, has secured a 'BBB' carbon rating from BeZero Carbon. This rating follows an initial credit issuance of 19,568 tCO2e in June 2026, verified by SCS Global under Verra's VCS. The programme aims to issue 245,000 tCO2e by Q1 2027 and 500,000 tCO2e by Q4 2027. This validation addresses historical scepticism in soil carbon sequestration by employing direct measurement, a 26.43 per cent uncertainty deduction, and distributing up to 70 per cent of net proceeds to farmers.
US renewable fuels company Gevo has signed a three-year agreement with carbon management platform CEEZER to supply a five-figure volume of carbon dioxide removal (CDR) credits through 2029. CEEZER will procure these credits from Gevo's North Dakota bioenergy with carbon capture and storage (BECCS) facility for an unnamed Fortune 500 enterprise software company. This marks Gevo's first multi-year supply contract for CDR credits and supports its goal of generating over $30 million in annual revenue from its carbon business. The deal signals increasing corporate demand for longer-term arrangements to secure carbon removal supply and quality.
Sylvera reported that announced carbon credit offtake volumes, excluding Microsoft, almost trebled in the first three quarters of 2026, rising from 8 million to 23 million tonnes. This increase indicates a widening pool of forward buyers in the voluntary carbon market. The data highlights a growing trend of developers securing pre-issuance commitments, with one Latin American ARR developer using a Pre-Issuance Rating to secure an offtake for 65% of future credits.
Regreener has released a guide for companies on how to responsibly purchase carbon credits, aiming to help them avoid common pitfalls such as overpaying or acquiring indefensible credits. The guide outlines a process for defining climate goals, understanding credit quality, and navigating market terminology and standards. It advises companies to set credit volumes based on emissions, choose a mix of avoidance and removal credits, and ensure credits are verified and retired on a public registry. The publication also addresses evolving claim regulations, noting the EU's Empowering Consumers Directive will ban 'carbon neutral' product claims based on offsetting from 27 September 2026.
Sylvera has identified four distinct decarbonisation levers for corporate strategies: physical low-carbon commodities, environmental attribute certificates (EACs), avoidance or reduction carbon credits, and carbon dioxide removal (CDR) credits. The company notes that while traditional approaches focused on emissions reduction and carbon credit offsets, the market now offers more diversified options like lower-carbon steel and ammonia. Regulatory frameworks such as SBTi and the GHG Protocol are still evolving to address these new levers, with revised rules expected through 2027 and 2028. Sylvera suggests that a diversified approach across these levers can reduce risk, lower costs, and improve stakeholder defensibility compared to relying on a single method.
Sylvera has published an explanation of marginal abatement cost curves (MACCs) and their application in corporate carbon procurement. A MACC ranks emission reduction options by cost per tonne of CO2e and total abatement potential, offering a more comprehensive view than simple price lists. The firm notes that MACCs help companies identify the most cost-effective pathways to meet emissions targets, particularly when cheaper options have limited supply. Sylvera advises that building a MACC for carbon procurement involves defining boundaries and targets, inventorying and costing all options, and accurately sizing each abatement lever.
Sylvera has published an explanation of the 'book-and-claim' mechanism, detailing its application for decarbonising heavy industrial supply chains. This system allows producers to sell physical low-carbon products locally while selling the associated environmental attribute to a different entity, tracked by a registry to prevent double-claiming. The mechanism is particularly relevant for heavy industries like cement, steel, and aviation fuel, where physical transport of low-carbon alternatives is often impractical or emissions-intensive. Sylvera distinguishes between mature energy attribute certificates (EACs) for Scope 2 emissions and nascent environmental attribute certificates for Scope 3, noting differences in market maturity and pricing transparency.
The Science Based Targets initiative (SBTi) has released version 2.0 of its Net-Zero Standard, incorporating changes from two public consultations and pilot tests. A key update is the replacement of 'Beyond Value Chain Mitigation' (BVCM) with 'Ongoing Emissions Responsibility' (OER), which integrates carbon removals and neutralisation. From 2035, Category A companies will be required to support carbon removals under the OER framework, impacting credit buyers. Companies submitting new targets after 31 January 2028 must use V2.0, with the validation portal for V2.0 submissions expected to open in Q1 2027.
The Voluntary Carbon Markets Integrity initiative (VCMI) and the Climate Vulnerable Forum and V20 Finance Ministers (CVF-V20) released the 'Article 6 Senior Officials’ Handbook' on 14 October in Bangkok. This policy tool aims to assist 77 climate-vulnerable countries in engaging with international carbon markets under Article 6 of the Paris Agreement. The handbook, comprising eight modules, provides guidance on market authorisation, revenue allocation, safeguards, and private sector engagement. It seeks to help these nations attract an additional $20 billion in annual carbon finance by 2030 to address an estimated $490 billion annual financing gap for development needs.