BeZero Carbon has given its first Biochar project the rare “A” rating, only 21 projects of the 350+ projects rated on their platform have an A or an AA rating. This rating is based on a comprehensive analysis of publicly available data and assesses the project against various risk factors, including additionality, carbon accounting, and non-permanence risks.

This pivotal move signifies the maturation of the Carbon Dioxide Removal (CDR) sector and particularly biochar which accounts for over 90% of all CDR deliveries.

The engineered carbon removal sector has been hindered by a lack of transparency and public information and that is set to change.

• Puro.Earth expects the supply of CDR in the next 18 months to grow by an “order of magnitude”.
• The U.S. Department of Energy has plans to purchase up to $35M of CDR credits from a portfolio of CDR pathways consistent with the objectives of the Carbon Negative Shot.

What is Engineered Carbon Removal?

As the world grapples with the climate crisis, there is a growing consensus that large-scale engineered carbon removal is indispensable.

In fact, projections indicate that by 2030, the annual demand for durable engineered carbon removal could range from 40 to 200 million tCO2. Rating the quality of these carbon credits including biochar will help enhance transparency and integrity in the market.

Currently, here are the top 5 carbon dioxide removal technologies available:

Direct Air Capture (DAC)

• Captures CO2 directly from ambient air using chemical processes.
• Suitable for long-term storage or utilization in various industries.

Bioenergy with Carbon Capture and Storage (BECCS)

• Combines biomass energy production with carbon capture technology.
• Captured CO2 is stored underground.

Enhanced Weathering

• Spreads crushed minerals on land or in the ocean to react with CO2.
• Forms stable carbonates, storing CO2 in a solid form.

Ocean Alkalinity Enhancement

• Increases the ocean’s capacity to absorb CO2 by adding alkaline substances.
• Also helps to mitigate ocean acidification.

Biochar

• Involves the pyrolysis of biomass to create a stable form of carbon.
• Can be added to soil to improve its quality and store carbon long-term.

What is Biochar?

Biochar is a form of charcoal produced from the pyrolysis of organic matter, usually plant-based materials like wood, crop residues, or manure. Its molecular structure changes to a more stable form, thus storing carbon much longer than biomass feedstock.

Key Advantages

Stable Carbon Storage: Biochar is highly stable and can remain in the soil for hundreds to thousands of years, effectively sequestering carbon.

Soil Fertility: When added to soil, biochar can improve water retention, nutrient availability, and microbial activity, thereby enhancing agricultural productivity.

Waste Utilization: Biochar can be produced from agricultural and forestry waste, providing a way to utilize these materials while reducing methane emissions from decomposition.

Energy Co-Production: The pyrolysis process also generates heat and syngas, which can be an input for energy.

Earlier this year BeZero Carbon found that biochar encounters fewer obstacles to scaling compared to other methods under consideration. 

Notable advantages for biochar include third-party verified methodologies, cost-effectiveness, well-developed ancillary value chains, and the potential for energy production. 

Biochar: The Market Leader

Biochar is at the forefront of the ex post technological carbon removal market; it is furthest along the Technology Readiness Level (TRL) of all carbon removal methods.

As a product of pyrolysis, a high-temperature, low-oxygen process, biochar has the ability to store carbon for extended periods, far surpassing its original biomass feedstocks. 

The process also generates waste gasses that can be useful as waste heat in district heating networks. Biochar’s versatility extends to its use as a soil amendment, a feed additive, and even as an input in concrete production.

‘A’ Rating: A Benchmark for Excellence

BeZero’s ‘A’ carbon rating is based on the rating analysis of publicly available information. Carbon credits rated ‘A’ have a high likelihood of achieving 1 tonne of avoided or removed CO₂e. This biochar rating assesses the project against BeZero’s risk factors.

Carbon Credit 3rd-Party Verification

In the Voluntary Carbon Market (VCM), third-party verification is a fundamental aspect of the carbon credit process. It serves as the initial step in confirming that a carbon removal activity has occurred. 

There are two ways to perform verification:

1. Developing an internal methodology that is subsequently verified by an external auditing service
2. Adopting methodologies established by third-party standards-issuing organizations.

Currently, key third-party methodologies available for Biochar include the European Biochar Certificate, Puro.Earth, and the Verified Carbon Standard.

A lower hydrogen to carbon and lower oxygen to carbon ratio generally means the Biochar is more stable and less likely to break down, making it better for long-term carbon storage. 

As the CDR sector gains momentum, biochar stands out as a key solution for long-term carbon sequestration and soil improvement. BeZero Carbon’s ‘A’ rating for a biochar project underscores the growing importance and effectiveness of engineered carbon removal in addressing climate change.

A report by Trove Research revealed that there’s a total of $36 billion invested in carbon credit projects from 2012 to 2022, accelerating with more than $18 billion raised in the last 2.5 years. But global efforts are still short of $90 billion to meet the 2030 carbon reduction targets.

Investments in developing carbon credit projects are an important market signal indicating levels of corporate climate action. 

However excessive criticism of quality may deter companies from engaging in their voluntary commitment to support carbon credits. This, in turn, may undermine critical voluntary climate actions from large companies. 

The new commitment will deliver over a thousand new carbon projects, ranging from forest protection to carbon capture and storage solutions. It will also provide a growing supply of carbon credits that companies can use for their net zero strategies. 

Trove Research is a leader in delivering data and intelligence on voluntary carbon market (VCM) and corporate climate pledges.

Carbon Credit Investments Reach $36 Billion

The report also analyzed capital invested in 7,000+ carbon credit projects from 2012 to 2022. Around $36 billion has been invested over this period, with $17 billion in 2021-2023 and $7.5 billion of this investment in 2022 alone.

The increase in investment is especially notable in the years from 2020 to 2022 as seen above. This has been fueled by the ballooning interest in using carbon credits by corporations to reach their climate targets. These corporations include the world’s largest companies.

The researchers also examined announced capital raises associated with the VCM since 2021. Results show that a total of $18 billion has been secured for carbon credit funds just for the last two and a half years. 

The largest raise was in 2021 with $7.8 billion. And around $3 billion has been committed up to 2025. 

Among those raised funding and committed investment, over 80% or $15 billion are for nature-based projects. These include REDD+, nature restoration, and improved forest management. A total of 246 nature-based initiatives cover a total area of 30 million hectares, almost the same size as Italy. 

But notably, there’s a growing share of capital for carbon engineering projects which include Direct Air Capture (DAC) and Bio-energy with CSS (BECCs). 

DAC, in particular, has been getting attention both from the private sector and federal government. Billions of dollars have been invested and promised by the U.S. Department of Energy into DAC and other carbon capture innovations. 

Bridging the $90B Funding Gap 

By region, since 2020 North America maintained the top spot as the largest destination for carbon credit investment, accounting for up to 16%. In comparison, only 1% of global carbon credits funding went to Europe. 

In terms of share, the East Asia and Pacific region got the biggest investment, representing ⅓ or $2.7 billion in 2022. However, the Sub-Saharan African region is keeping pace with its 70% increase in global investment share. 

The analysis also showed that since 2020, over 1,500 new carbon credit projects have been developed and registered with the 5 leading carbon registries. It represents a 160% increase in registration rate compared to the 2012-2020 period.

Together, these new projects claim to reduce an additional 300 million tonnes of CO2 annually, or about the same as the UK’s annual emissions. 

Amid the growth in the number of registered projects, more than 3,000 additional projects are awaiting registration. Once implemented, together they could reduce another 530 million tonnes of CO2 emissions. 

Developments in carbon credit investment are bullish. However, the current commitment is still not enough to satisfy the global 2030 emission reduction targets. In fact, it represents just a third of the total funding needed to realize enough carbon credits by the decade’s end. 

The report said that another $90 billion in capital is necessary by 2030 to meet net zero goals. By 2050, that capital expenditure must grow to a whopping $1,600 billion, or $1.6 trillion, in carbon credit funding to reach the 1.5C scenario. That means a $60 billion annual investment in carbon credit projects. 

Investments in carbon credit projects have surged but a significant gap remains to achieve 2030 climate targets. Urgent funding is required to bridge the $90 billion deficit and accelerate the transition to a net zero future.

REDD+ projects have long been touted as a climate change solution. However, a UC Berkeley study funded by Carbon Market Watch reveals that only 1 out of every 13 credits represents a real emissions reduction. 

The study “Error Log: Exposing the methodological failures of REDD+ forestry projects” concludes that REDD+ is not suitable for carbon offsetting and raises concerns about its impact on local communities and the environment.

What is REDD+

REDD+ stands for “Reducing Emissions from Deforestation and Forest Degradation.” It is an international initiative that incentivizes forest conservation to reduce carbon emissions and combat climate change.

At the end of 2022, there are over 620 individual REDD+ projects and programs implemented globally, backed by international donor organizations, such as the UN-REDD and the World Bank. For the same period, there were over 400 million REDD+ credit issuances, representing a quarter of total credits issued in the market.

Five Main Factors Influencing Carbon Credits

1. Baseline Setting: The baseline is the estimated level of carbon emissions that would occur without the project. Accurate baselines are crucial for measuring a project’s effectiveness. The report shows that there’s a staggering 14x overestimation in baseline settings. This means that the highest baseline calculated for a given project was 14 times higher than the lowest, leading to inflated carbon credits.
2. Leakage: This refers to the unintended increase in carbon emissions outside the project’s boundary due to its implementation. For example, if a project stops deforestation in one area, the activity might just move to another area. Current methodologies underestimate leakage, with an average rate of just 4.4%, affecting the overall effectiveness of the carbon credits.
3. Forest Carbon Accounting: This involves calculating the amount of carbon stored in the forest that the project aims to protect. Overestimation in this area leads to more carbon credits being issued than are actually warranted. The report indicates a 23%-30% overestimation in forest carbon, which includes both aboveground and belowground carbon pools.
4. Permanence: This factor considers the long-term viability of storing carbon in forests. Risks like wildfires, pests, and political instability can release stored carbon back into the atmosphere. These risks are often underestimated; for instance, natural risks are underestimated by more than a factor of 10. This affects the long-term credibility of the carbon credits.
5. Safeguards: These are measures put in place to protect local communities and the environment from potential harm caused by REDD+ projects. Current VCS (Verified Carbon Standard) safeguards are weak and fall behind “best in class” consideration by international standards. This raises ethical concerns and questions the overall integrity of the projects.

The Baseline Dilemma: A Foundation of Over-Crediting

Baselines set the estimated emissions without the project. The study found that inflated baselines led to over-crediting, with results differing by more than 14x for a given project.

Recommendations:

• Implement Ex-Post Baseline Setting: Real-time data could correct inflated baselines, which are currently overestimated by 14x.
• Transparency is Key: All calculations should be publicly available, given the current lack of transparency.
• Third-Party Involvement: Independent analysts should set baselines, eliminating conflicts of interest.

Leakage: The Silent Saboteur

Leakage increases emissions outside a project’s boundary. The study found that the average leakage rate deducted by REDD+ projects is just 4.4%, far below the prescribed 10%-70%.

Recommendations:

• Standardize Leakage Identification: First and foremost, clearly define areas where deforestation is likely to shift, considering the current 4.4% average leakage rate.
• Tighten Exceptions: Subsequently, establish strict criteria, given that one out of four methodologies fails to include market leakage.
• Global Leakage: Lastly, include international factors, as all four assessed methodologies unfortunately ignore international leakage.

Forest Carbon Accounting: The Numbers Game

Carbon accounting is central to credit issuance. The study found a 23%-30% overestimation in forest carbon content, with belowground carbon overestimated by 61%.

Recommendations:

• Adopt Scientifically-Backed Equations: Use equations based on the latest research, given the current 23%-30% overestimation.
• Open-Source Data: Make all data publicly available, as not one of the 12 assessed projects shared their data.
• Quantify Uncertainty: Clearly communicate the 61% overestimation in belowground carbon.

Permanence: The Long-Term Risk

Permanence ensures long-term carbon storage. The study found that natural risks like wildfires are underestimated by more than a factor of 10.

Recommendations:

• Avoid Offsetting Fossil Fuels: Carbon storage in forests should not offset fossil fuel emissions, given the high risk of release.
• Base Risk on Science: Use scientific evidence, as natural risks are currently underestimated by more than a factor of 10.
• Revise Buffer Contributions: Make buffer pools more robust, given the current underestimation of risks.

Safeguards: The Missing Link

Safeguards protect against harm. The study found that VCS safeguards are less stringent than international standards like the IFC and GCF.

Recommendations:

• International Alignment: Adopt policies that meet or exceed international standards, given the current ambiguity in VCS rules.
• Rigorous Verification: Verification bodies should apply policies strictly, as they currently “rubber-stamp” projects.
• Grievance Mechanisms: Establish a free-of-charge, independent channel for grievances, given the current lack of accountability.

The UC Berkeley study serves as a wake-up call. By implementing its recommendations, we can improve REDD+ projects’ quality, effectiveness, and ethical standing.

The study provides a roadmap for making these projects more aligned with their intended goals, ensuring a meaningful contribution to the fight against climate change.

Indigo Ag, the leading sustainability partner of the agriculture industry, raised +$250 million to further grow its sustainable agriculture programs and boost farmers’ revenues with carbon credits. 

U.S.-based Indigo Ag harnesses science and technology to help improve the sustainability and profitability of the agriculture industry. The huge fundraise signals market validation of Indigo’s strategy and confidence in its ability to scale up agribusiness successfully. The fresh funds will help the company to almost double its revenue. 

The funding round was led by Flagship Pioneering, an existing investor, and is participated by new investors that include Lingotto, an investment management company owned by Exor, one of Europe’s largest diversified holding companies.

Indigo is currently one of the only companies providing companies with high-quality agricultural carbon credits at scale, via its carbon farming program operating across 14 countries.

How Indigo’s Program Generates Ag Carbon Credits

Indigo’s carbon farming program provides solutions to companies looking for a market-based approach to capture and store carbon on soils. It offers a credible, nature-based climate solution for businesses. 

Indigo adopted a hybrid approach that combines soil sampling and modeling to help farmers generate agricultural carbon credits that meet industry quality standards. The Climate Action Reserve then verifies and issues the credits for entities committed to buying credit offsets.

The credits reflect the works of farmers who opted for Indigo’s climate-friendly farming practices, which is also called regenerative farming. Common examples include planting cover crops and less soil tillage.

Here is how agricultural carbon credits generation works through Indigo’s carbon farming program:

Indigo’s integrated business model enables actors in the agriculture supply chain to adopt and profit from their sustainability efforts. In particular, farmers working with the company can maximize their earnings by performing sustainable farming practices, each year of their rotation, while also improving soil quality. 

With the $250 million new capital, Indigo expects revenue to grow up to $100 million by 2024.

Speaking for Ag Partners Coop, Jed Miller commented on the raise saying:

“Farmers and agribusinesses need strong, innovative partners that create value… This fundraise is not only a win for Indigo, but a major win for market access. We look forward to continuing our collaboration with Indigo to drive farmer success.”

Delivering Agricultural Sustainability Solutions at Scale

After attracting additional large investors and more farmers to serve, Indigo was able to achieve great financial success. 

Its net revenues for last year increased 40% compared to the previous year, while total earnings for the first 7 months this year jumped 90% versus 2022. 

Moreover, Indigo’s digital sustainability program, Market+ Source, enabled the company to work with multi-billion dollar companies in reducing their Scope 3 emissions. Through this initiative, Indigo is on track to provide partners with 30 million bushels of sustainably grown products this year.  

Its Scope 3 accounting program connects the entire ag value chain to produce more sustainable crops. Under this program, farmers provide field-level data and earn a premium for sustainably grown grains, which help reduce carbon emissions.  

To date, Indigo Ag has generated around 133,000 certified and verified agricultural carbon credits. The company revealed its first-ever carbon credits production in June last year. 

The ag sustainability champion is currently working on its 3rd carbon crop. The company also said that enrollment for its 4th carbon harvest showed continued growth in both farmer and acreage participation.

Indigo aims to expand its digital products further and has a pipeline of 38 new biological products scheduled for a global launch over the next two and a half years.

The significant fundraise is a testament to “Indigo Ag’s successful transition from a startup to a trusted partner that is delivering critical sustainability solutions”, the company’s CEO and President Ron Hovsepian said. He also added that they have the science, business momentum, and ample resources to turn agricultural sustainability into real value.  

With an innovative approach that blends science and technology, Indigo Ag is not only boosting farmers’ incomes but also playing a pivotal role in decarbonizing the agricultural industry to combat climate change.

Apple announced that its all-new Watch Series 9 marks its first-ever carbon neutral product, representing the iPhone maker’s giant step towards its ambitious goal of meeting carbon neutrality by 2030. 

Apple’s carbon emissions reduction strategy focuses on three key areas: electricity, materials, and transportation. 

The tech giant underlines the importance of reducing emissions within these sectors before using high-quality carbon credits from nature-based projects to offset any remaining emissions.

Apple’s Decade-Long Journey to 2030 Carbon Neutrality 

Apple’s path to carbon neutrality began over a decade ago and has since achieved significant milestones. In 2020, the company attained carbon neutrality for its global corporate operations and announced the Apple 2030 strategy, aiming for carbon neutrality or net zero carbon across its entire value chain by 2030.

Achieving carbon neutral corporate operations involves the use of 324,100 metric tons (Mt) CO2e of carbon removal credits. 

The company’s 2030 strategy revolves around a 75% reduction in overall carbon emissions from 2015 levels. And Apple has already reduced total emissions by more than 45% while simultaneously increasing revenue by over 65%. 

Apple Net Zero Emissions Roadmap

While the tech giant is still working its way towards its 2030 climate goal, it managed to achieve a significant milestone as it announced its first-ever carbon-neutral watch series. 

The Apple Watch lineup reduces product emissions by over 75% for each carbon-neutral watch. These watches were selected based on strict criteria, including the following:

• 100% clean electricity for manufacturing and product usage.
• 30% recycled or renewable material by weight.
• At least 50% of shipping is without air transportation.

In the company’s carbon footprint calculations shown above, they also account for the emissions needed to generate clean electricity. This specifically refers to manufacturing renewable energy infrastructure, such as wind and solar farms. 

Only after implementing those carbon reduction efforts does Apple resort to offset residual emissions through high-quality carbon credits, ultimately achieving a carbon-neutral product footprint. 

The Carbon Footprint of Apple Watch SE paired with Sport Loop

In the case of Apple Watch SE paired with Sport Loop, the remaining 7.2kg of carbon emissions were offset with carbon removal credits. These carbon offsets are from Apple’s nature-based solutions through its Restore Fund program. The company expanded this program by doubling its investment up to $200 million in April this year. 

How About The Other Products?

Though revealing the carbon neutrality of Apple Watch is something, the company seeks to achieve the same for all its products by 2030. That means including emissions of other Apple watches, iPhones, iPad, iPod, MacBook, and more. 

Considering that Apple Watch SE has the least carbon footprint, the company still has huge emissions to reduce and offset. 

For various iPhone and iPad models, the total CO2 footprint is around 4,500 kg. This figure includes only one product per model, and Apple sells millions of each model worldwide. 

According to Apple’s Environmental Report 2023, its total product life cycle emissions (Scope 3) in 2022 is >20 million Mt. To offset 25% of these emissions, the company would need over 5 million Mt of carbon removals.

Investing Heavily in Carbon Removals

Carbon removal is crucial to tackling the climate crisis and meeting global climate goals. 

After massive reductions in product emissions, Apple will cover residual emissions with high-quality carbon removal credits primarily from nature-based projects. These include protecting forests and restoring grasslands and wetlands. 

Apple defines high-quality carbon credits as those coming from projects that are real, additional, measurable, permanent and quantified. The tech company has been advancing carbon removal initiatives that meet those quality criteria through its Restore Fund program. 

The carbon removal funding supports projects in Latin America, generating credits certified by international standards such as Verra. Other certifying organizations are the Climate, Community & Biodiversity Standards and the Forest Stewardship Council.

For the carbon neutral Apple Watch models, the carbon offsets used will come from projects that restore and protect forests in Paraguay and Brazil. This is in partnership with Arbaro Advisors and BTG Pactual Timberland Investment Group.

Apple’s commitment to environmental sustainability extends beyond carbon neutrality. The company has also made the following efforts:

• Ceased the use of leather across all its product lines;
• Introduced entirely fiber-based packaging for the new Apple Watch lineup;
• Increasingly incorporated recycled materials into iPhone production; and 
• The Home app features a new tool called Grid Forecast, aiding users in selecting cleaner energy sources for electricity consumption.

Clean Energy, Sustainable Design, and Low-Carbon Materials

Apple plays a pivotal role in advocating for clean energy and supports its suppliers in transitioning to renewable power sources. The company actively invests in large-scale solar and wind projects and collaborates with manufacturing partners to promote clean energy adoption.

Currently, Apple and its global suppliers collectively support over 15 gigawatts of clean energy worldwide, sufficient to power over 5 million American homes. 

Apple’s Supplier Clean Energy Program, joined by 300+ suppliers, commits to 100% renewable electricity for Apple production by 2030.

Moreover, Apple designs products with sustainability at their core, incorporating recycled materials into their creation. The company is phasing out leather in favor of FineWoven, a textile made from 68% post-consumer recycled content. The company also aims to use 100% recycled metals in key components by 2025.

Looking Beyond 2030

Beyond its carbon neutrality goals, Apple also commits to supporting broader efforts to decarbonize shipping industries and identifying pathways for developing sustainable aviation fuels. The company also supports other innovations such as alternative fuels and electric vehicles.

Apple’s commitment to a 90% reduction in emissions by 2050 underscores the company’s role in the fight against climate change. Apple advocates for collective action, urging governments, businesses, and individuals to join forces in accelerating progress toward a sustainable future.