What Are Biochar and Carbon Credits? Biochar Carbon Removal, Credit Types, International Standards and Taiwan's System
What Are Biochar and Carbon Credits?
A carbon credit is a certificate representing 1 metric ton of carbon dioxide equivalent (tCO2e) reduced or removed. It must be generated by a project that has been validated and verified by a third party, and it only counts as truly used once it has been retired in a registry; Taiwan's regulations call it an "emission reduction credit." Biochar is stable solid carbon formed by heating agricultural and forestry residues such as bamboo, wood and rice husks to high temperatures in the absence of oxygen (pyrolysis). Applied to soil or sealed into building materials, it can store carbon for several hundred years or more, which is why biochar carbon credits are classed as "removal-type, durable" credits. Unlike reduction credits that come from "emitting less," such as renewable energy, biochar physically removes carbon from the atmosphere and is internationally regarded as an important tool for neutralizing residual emissions under net zero. Taiwan has not yet approved a dedicated reduction methodology for biochar, so most developers apply under international standards such as Puro.earth, Verra and Isometric.
Carbon Credits at a Glance
| Unit | 1 carbon credit = 1 metric ton of CO2e reduced or removed |
|---|---|
| Legal term in Taiwan | Emission reduction credits (Article 25 of the Climate Change Response Act) |
| Two main types | Reduction/avoidance (emitting less) and removal (drawing carbon out of the atmosphere and storing it) |
| Biochar carbon credits | Removal-type and durable; carbon can be stored stably for several hundred years or more |
| Assessing quality | Additionality, permanence, conservative quantification, no double counting, third-party verification; see the ICVCM Core Carbon Principles (CCP) |
| Carbon fee deductions in Taiwan | Domestic emission reduction credits can offset up to 10% of chargeable emissions; overseas carbon credits require Ministry of Environment approval and are capped at 5% |
What Types of Carbon Credits Are There?
The amount emitted less compared with a baseline scenario, e.g., renewable energy, energy efficiency, methane recovery and efficient cookstoves.
CO2 drawn out of the atmosphere and stored, e.g., afforestation and forest management, soil carbon, blue carbon, biochar and direct air capture (DACCS).
Removal Credits Differ Widely in Durability
| Removal method | Storage duration | Reversal risk |
|---|---|---|
| Forests, soil, blue carbon (nature-based) | About several decades | Wildfire, pests and disease, logging or changes in farming practices can return carbon to the atmosphere; buffer mechanisms are usually required |
| Biochar | Several hundred years or more | Exists as a stable aromatic carbon structure; low reversal risk |
| Geological storage (DACCS, BECCS, mineralization) | Over 1,000 years | Very low |
Voluntary and Compliance Markets
In compliance markets, obligations are set by regulation, as in the EU Emissions Trading System. What Taiwan currently has in place is a carbon fee system, which is "fee-based" rather than a trading market; fees on 2025 emissions were paid for the first time in May 2026. In the voluntary market, companies buy credits voluntarily to meet their ESG commitments; common standards include Verra, Gold Standard, Puro.earth and Isometric. Taiwan's emission reduction credits serve both purposes: they can be used for statutory purposes such as offsetting incremental emissions and deducting chargeable emissions under the carbon fee, and also for voluntary claims.
How Does Biochar Remove Carbon?
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Plants absorb CO2
Biomass such as bamboo, wood, rice husks and fruit tree prunings absorbs carbon dioxide from the atmosphere as it grows.
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If the waste rots or is burned
The carbon quickly returns to the atmosphere; this is the baseline scenario.
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High-temperature pyrolysis without oxygen
Converts a large share of the carbon into stable aromatic carbon that microbes find hard to break down, while producing usable heat or bio-oil and syngas.
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Application and long-term storage
Applied to farmland and grassland, or incorporated into building materials such as concrete and mortar, locking the carbon away for several hundred years or more.
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Credits issued after deducting emissions
Credits can be issued only for the net storage remaining after deducting emissions from feedstock transport, processing and energy use, as well as the baseline, and only after third-party verification.
Biochar stability is commonly assessed by the molar ratio of hydrogen to organic carbon (H/Corg): the lower the ratio, the more stable the biochar. The European Biochar Certificate (EBC) uses an H/Corg below 0.7 as its quality threshold.
Which International Standards Apply to Biochar Carbon Credits?
| Standard | Current version | Key points |
|---|---|---|
| Puro.earth | Biochar Methodology Edition 2025 | Credits are labeled CORC200+, indicating storage of "several hundred years" |
| Verra VM0044 | v1.2 (v2.0 under revision) | Covers soil and non-soil applications such as building materials; v1.2 has been approved by ICVCM |
| Isometric | Biochar Production and Storage Protocol | Minimum 200-year durability, with a 1,000-year option based on inertinite measurement; v1.0 has been approved by ICVCM |
| Carbon Standards International | Global Biochar C-Sink、Global Artisan C-Sink | The Artisan version is for smallholder farmers and hand-built kilns in low- and middle-income countries |
| EBC European Biochar Certificate | v10.5E | Biochar quality and product certification; not a carbon credit methodology in itself |
| EU CRCF | Permanent carbon removal methodology, effective May 7, 2026 | The EU's official carbon removal certification framework, covering biochar applied to soil or incorporated into materials |
How do you judge the quality of a methodology? Check whether the methodology has been approved by ICVCM (the Integrity Council for the Voluntary Carbon Market). As of October 2026, the biochar methodologies Verra VM0044 v1.2, Isometric v1.0 and CAR U.S. and Canada Biochar v1.0 have received CCP approval, while Puro.earth Edition 2025 is still under review.
Can Biochar Really Store Carbon for 1,000 Years?
Views still differ internationally. Puro.earth only grants a "several hundred years" label, considering the evidence for 1,000 years insufficient so far; Isometric allows a 1,000-year label to be obtained by measuring the proportion of inertinite using random reflectance. In October 2025, several standards bodies and researchers convened a cross-standard workshop; the consensus was that quantification should be done at the project level and that millennial permanence needs more research. When procuring, confirm the standard and the durability label behind the credits.
How Do Biochar Carbon Credits Differ from Forest Carbon Credits?
| Comparison | Biochar carbon credits | Forest carbon credits |
|---|---|---|
| Type | Durable removal | Nature-based removal (afforestation, forest management) |
| Storage duration | Several hundred years or more | About several decades |
| Reversal risk | Low | Wildfire, pests and disease, logging; buffer pools are usually required |
| Price (2026 market) | Roughly in the US$100–200 per ton range | Usually much lower |
| Co-benefits | Waste valorization, soil improvement, use in building materials | Biodiversity, soil and water conservation, community benefits |
The two can complement each other in a carbon credit portfolio. Note that the SBTi Corporate Net-Zero Standard V2.0 requires residual fossil CO2 emissions to be neutralized with long-duration removals, and forest carbon credits alone are not sufficient to fill that role.
Can Biochar Carbon Credits Be Developed in Taiwan?
Developers in Taiwan can apply for biochar carbon credits under international standards such as Puro.earth, Isometric, Verra and Carbon Standards International, and obtain quality certifications such as EBC.
Under the Regulations Governing Voluntary Greenhouse Gas Reduction Projects, projects must use reduction methodologies approved and published by the Ministry of Environment. As of November 2026, the Ministry of Environment has not yet approved a dedicated biochar methodology, and the "Improved Agricultural Soil Management Methodology" approved in 2025 explicitly excludes biochar.
In September 2026, the Ministry of Environment announced that it would accelerate the development of a biochar carbon removal methodology and certification process, working with the Ministry of Agriculture, with a target of removing 1 million metric tons of CO2e per year by 2030.
Practical advice: plan projects under international standards first, while tracking the Ministry of Environment's methodology announcements. Biochar can also be incorporated into building materials, complementing efforts to reduce the embodied carbon of buildings. Further reading: " What is the LEBR low-carbon building label?".
Can Carbon Credits Offset Taiwan's Carbon Fee?
| Credit source | Can it offset the carbon fee? | Conditions |
|---|---|---|
| Domestic emission reduction credits issued by the Ministry of Environment (voluntary reduction or offset projects) | Yes | Deduction ratio of 1.2 (1 ton of credits deducts 1.2 tons of chargeable emissions), capped at 10% of chargeable emissions |
| Overseas carbon credits | Conditionally | Require Ministry of Environment approval and are limited to businesses not at high risk of carbon leakage, capped at 5%; the approval criteria are still being drafted |
| International carbon credits listed on the Taiwan Carbon Solution Exchange (TCX) | Not at present | Part of the voluntary market; can be used for voluntary carbon neutrality claims |
Domestic emission reduction credits must be traded through the Taiwan Carbon Solution Exchange (TCX) platform, buyers must be businesses with a statutory use for them, and each credit can be transferred only once. Proof of retirement must be submitted by the end of May each year together with the carbon fee filing. Credits already used for a carbon neutrality claim may not also be used to offset the carbon fee. Further reading: " What are carbon inventories, carbon footprints and SBTi?".
How Can Companies Use Carbon Credits Without Greenwashing?
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Reduce first, offset second
The ISO 14068 carbon neutrality standard (which has replaced PAS 2060) requires an inventory, emission reductions and removals within the value chain first, with carbon credits used only for residual emissions; SBTi also does not allow carbon credits to count toward reduction targets.
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Confirm the use before procuring
Only credits issued or approved by the Ministry of Environment can offset the carbon fee; carbon neutrality claims and SBTi net zero each have their own quality and type requirements.
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Do quality due diligence
Confirm whether the standard and methodology are ICVCM-approved, as well as the vintage, additionality, durability label, reversal risk and buffer mechanism, proof of retirement and registry serial numbers.
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Be careful with public claims
From September 27, 2026, the EU EmpCo Directive prohibits claiming, on the basis of carbon offsets, that a product is "carbon neutral" or has a positive impact on the climate. A safer approach is to disclose how many tons of carbon removal credits have been purchased and retired, and under which standard they were certified.
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Disclose separately
Disclose total emissions and offset volumes separately, stating the project type, standard, quantity, vintage and proof of retirement.
Biochar and Carbon Credits: FAQ
What is a carbon credit?
A carbon credit is a certificate representing 1 metric ton of carbon dioxide equivalent reduced or removed, generated by a project validated and verified by a third party. It can be transferred, but it must ultimately be retired in a registry before its benefit can be claimed. Taiwan's regulations call it an "emission reduction credit," issued by the Ministry of Environment under the Climate Change Response Act.
What are biochar carbon credits, and how do they differ from regular carbon credits?
Biochar carbon credits are removal-type, durable carbon credits: agricultural and forestry residues are pyrolyzed at high temperatures without oxygen into stable carbon, which is applied to soil or sealed into building materials, locking it away for several hundred years or more. Unlike reduction credits such as renewable energy, they physically remove carbon from the atmosphere and are internationally regarded as a tool for neutralizing residual emissions under net zero.
How do biochar carbon credits differ from forest carbon credits?
Both are removal-type. Forest carbon is stored for about several decades and may be reversed by wildfire, pests and disease or logging; biochar carbon exists in a stable structure, and international standards assign it durability labels ranging from 200 to 1,000 years. In 2026, biochar carbon credits are roughly in the US$100–200 per ton range, while nature-based credits are usually much lower.
Which international standards apply to biochar carbon credits?
The main ones are Puro.earth (Edition 2025), Verra VM0044, Isometric, and Carbon Standards International's Global Biochar C-Sink, plus EBC as a quality certification. The EU CRCF biochar methodology took effect in May 2026. Check ICVCM to confirm whether a methodology has been approved.
Can biochar carbon credits be developed in Taiwan?
Yes, through the voluntary market under international standards. As of November 2026, the Ministry of Environment has not yet approved a dedicated biochar reduction methodology, and the existing Improved Agricultural Soil Management Methodology also excludes biochar; the Ministry of Environment has announced it will accelerate methodology development, with a target of removing 1 million metric tons per year by 2030.
Can carbon credits offset Taiwan's carbon fee?
Yes, conditionally. Domestic emission reduction credits issued by the Ministry of Environment can be deducted from chargeable emissions at a deduction ratio of 1.2, capped at 10%; overseas carbon credits require Ministry of Environment approval, are limited to businesses not at high risk of carbon leakage and are capped at 5%, with the approval criteria still being drafted. International carbon credits bought on the Taiwan Carbon Solution Exchange (TCX) cannot currently offset the carbon fee.
Can biochar really store carbon for 1,000 years?
Views still differ internationally. Puro.earth only grants a "several hundred years" label; Isometric allows a 1,000-year label to be obtained through inertinite measurement. The consensus of a cross-standard workshop was that quantification should be done at the project level and that millennial permanence needs more research. When procuring, confirm the durability method the credits rely on.
Can biochar only be spread on farmland?
No. The main storage pathways are soil application (farmland, grassland, horticulture), incorporation into building materials such as concrete and mortar, and low-oxygen burial. Verra VM0044 and the EU CRCF both cover soil and material applications, and use in building materials can also be combined with reducing the embodied carbon of buildings.
Can buying carbon credits let you claim a product is carbon neutral?
Proceed with great caution. Under ISO 14068, you must first conduct an inventory and reduce emissions, use only high-quality carbon credits to offset residual emissions, and disclose fully. For products sold to EU consumer markets, the EmpCo Directive prohibits carbon-neutral product claims based on carbon offsets from September 27, 2026; a safer approach is to disclose the quantity of retired carbon credits and the standard they were issued under.
Need Help with Carbon Credits and Carbon Removal?
GreenJump helps companies assess the quality and use of carbon credits, plan carbon removal projects such as biochar, and integrate carbon inventories, decarbonization pathways and carbon neutrality claims.
