Enabling small-scale production of biochar in carbon markets : A multi-actor governance approach

Sammanfattning: Climate change is increasing the temperature rise, which damages nature and people. Increasing and using carbon dioxide removal (CDR) techniques are crucial to limit global warming to staying under 2 °C and fulfilling the Paris Agreement. There are several different CDR techniques, and biochar is one. Biochar is estimated to be able to contribute significantly as a carbon sink, and using biochar in agriculture can have several additional benefits, such as increasing crop yields. Most farmers in low- and lower-middle-income countries are smallholder farmers who cultivate two hectares of land or less. This can present an opportunity for them to explore the use of biochar. Carbon credits are sold and traded on carbon markets and can broadly be divided between compliance such as EU ETS and voluntary, for example, companies wanting to fulfil climate targets. One credit is equivalent to one tonne of carbon dioxide being sequestered. The aim of the study is to provide knowledge about the enablement of small-scale biochar as a technology in carbon markets, focusing on low- and lower-middle-income countries using a multi-actor governance approach. The study combines a literature review and qualitative interviews. Carbon markets are signified by several attributes of multi-actor governance, including public and private cooperation and cooperation on several scales. The main drivers and barriers for biochar in carbon markets concern sustainability aspects, training and education, expenses and income, small-scale production, and technological maturity. The income from carbon credits can facilitate several barriers to applying and using biochar. Still, it also has challenges such as measuring, verifying, reporting and fulfilling the requirements of high-quality carbon credits, which can be extra demanding for smallholder farmers. Small-scale biochar production potentially has better conditions for voluntary markets due to more variations in the demand for credits. In compliance markets, buying countries often want to buy large amounts of credits, and a majority of countries do not recognise biochar as a carbon sink for countries’ own target fulfilment. Small-scale biochar production has potential for carbon markets. Still, more research is needed on the carbon credit-specific aspects and the threshold for cooperatives of smallholder farmers, and what will happen when the central market mechanism under Article 6 in the Paris Agreement is final.