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We’re thrilled to announce the launch of our new comparative blog series – Biochar Beyond Borders! Every month, we’ll highlight key takeaways from an interview with an industry leader in the global biochar industry. Each blog will focus on a specific region or country, highlighting key players and regional dynamics shaping the local biochar sector. Our goal is to provide actionable takeaways and foster meaningful dialogue—connecting thought leaders, innovators, and practitioners to inspire progress across the biochar community. Today, we'll focus on:
Latin America holds huge potential for a thriving biochar-market. Key to unlocking this is fulfilling the many potentials present in the region. Latin America has a well-developed agricultural sector, a wide diversity of feedstocks, unique soil composition, and promising policies that aim to address the market barriers.
In order to fulfill the many potentials in Latin America, specific barriers need to be addressed that are currently hindering the growth of the biochar sector in Latin America. We talked with Luisa about the very nascent carbon markets in Latin America, its inexistent biochar markets, the lack of access to financing mechanisms and local technology partners, and lastly the infrastructural barriers in the region.
A strong carbon market and market integration of biochar are vital to empower this sector and to further strengthen its stakeholders. In this section we talk about what universal certifications are and why they are so crucial towards the development of the Latin American biochar sector. We also address the unique market structure of the biochar players in Latin America.
To fully unlock the potential of Latin America’s biochar market, targeted efforts must address financial, infrastructural, and regulatory barriers. Strengthening carbon markets, integrating biochar into these systems, streamlining certification processes, and fostering regional collaboration are crucial steps toward sustainable growth.
We talked with Luisa Marín about the Latin-American biochar market for our first part of Biochar Beyond Borders. As a Board Member of the Instituto Latinoamericano del Biochar (the Latin American Biochar Institute), former Mexican Country Director of The Next 150 and currently the Executive Director of the International Biochar Initiative, Luisa is uniquely positioned to share valuable insights into the Latin American biochar market. Here’s what we learned:
During our discussion, Luisa emphasised the immense potential of the Latin American biochar market. The region provides a strong foundation for growth with its well-developed agricultural sector, abundant feedstock variety, and diverse soil compositions. These natural advantages are further reinforced by proactive policies, positioning Latin America as a promising hub for biochar innovation.
Latin America's primary strength lies in its thriving agricultural sector. Farmers across the region are actively seeking sustainable solutions to improve their soil health and diversify their revenue streams. Biochar is widely recognised for its ability to do both.
Therefore, the potential demand for biochar in this highly agriculture-dependent region is enormous. However, due to low market awareness, the key to unlocking this demand lies in the involvement of small-scale farmers and agroforestry organisations. These groups stand to benefit significantly from biochar's capacity to increase yields while reducing the carbon footprint of their agricultural waste and chemical fertiliser inputs.
Another remarkable strength in the Latin American biochar market is the abundant availability of low-cost feedstocks. With the emergence of affordable and robust industrial pyrolysis installations, biochar producers such as Exomad Green have demonstrated their ability to effectively process large-scale agricultural waste streams.
Feedstocks such as sugarcane and agave bagasses, sargassum, açaí, cocoa, and coffee husks hold immense potential due to their high availability in the region. This abundance offers significant scalability, enabling Latin America to contribute meaningfully to large-scale climate action.
Previously, agricultural residues like sugarcane bagasse and coffee husks were often composted or burned. Today, these residues are increasingly transformed into biochar, which is proven to create long-term carbon sinks in soils with a plethora of environmental and social co-benefits.
The shift away from open-field burning or natural decomposition towards biochar creates new opportunities for farmers to diversify their revenue streams through remuneration from biochar production (artisanal biochar projects) or through the delivery of biomass for biochar production.
One of the key factors driving the region's enormous biochar market potential is Latin America's soil composition. Wim Sombroek, a pioneer in the study of Amazonian Dark Earths, demonstrated the significance of pyrogenic carbon-rich soils in enhancing soil health and improving agricultural productivity.
Tropical soils dominate much of Latin America and are often characterised by high acidity, low organic matter, and nutrient depletion due to intense weathering and agricultural use. These conditions make tropical soils particularly well-suited for biochar application. By improving soil structure, retaining nutrients, and increasing water-holding capacity, biochar addresses many of the challenges faced in these regions, making it an invaluable tool for tropical agriculture.
The region’s well-studied climate and soil conditions provide an ideal foundation for maximising biochar’s benefits. This combination of historical knowledge and modern innovation positions Latin America as a leader in leveraging biochar to improve soil health while addressing the climate crisis.
Latin America is making strides in progressive policy development that could indirectly support the adoption of biochar. Luisa notes, “Latin America is still evolving regarding biochar-specific policies, but some countries offer general agricultural subsidies and incentives that can indirectly benefit biochar adoption.” Brazil and Argentina stand out for their proactive approaches to sustainable agriculture, implementing policies that align with biochar’s potential.
One example is Brazil’s ABC Plan (Low Carbon Agriculture Program), which incentivises climate adaptation and low-carbon practices in agriculture, creating opportunities to integrate biochar into sustainable farming initiatives.
Brazil’s National Development Bank (BNDES) has recently approved a record-breaking $154.9 million (BRL 882 million) in funding for conservation and reforestation projects, further enabling climate-positive agricultural solutions.
While biochar-specific policies are not yet prevalent, the general trend toward climate adaptation and sustainable agricultural practices in Latin America provides a promising foundation for biochar adoption. These policies are critical for fostering innovation and scaling biochar solutions in the region’s agricultural sector.
Despite its potential, Latin America’s biochar market faces significant challenges. A nascent carbon market, the lack of a developed biochar industry, limited financing, scarce local technology partners, and infrastructural barriers hinder progress. Addressing these obstacles is crucial for unlocking the region’s biochar potential and advancing sustainable agricultural practices.
While carbon markets in Latin America are gaining momentum, they remain in their infancy. Several countries, such as Peru, are actively exploring these markets, but large-scale implementation of specific projects remains limited. Furthermore, participation in these markets and the use of associated carbon credit systems are often voluntary, with no strong regulatory frameworks compelling organisations to engage.
Mandatory carbon markets, such as Mexico's pilot emissions trading system (ETS), are vital to fostering growth in the region's carbon markets. However, initiatives like these are still uncommon, leaving much of the potential untapped.
The growth of Latin America’s carbon markets is further constrained by limited awareness, economic and infrastructural barriers, and regulatory challenges. Addressing these issues will be essential to unlocking the region's carbon market potential and advancing its contribution to global climate solutions.
While carbon markets in Latin America remain in their early stages, the biochar market is virtually inexistent. As Luisa describes: "There is no market for biochar today in Latin America." It still needs to be built to fully realise the region's production, trade, and application of biochar.
Despite the promising policies aimed at promoting sustainable agriculture, none specifically address biochar. To realise its potential, Latin America must accelerate the integration of biochar into the developing carbon markets. Without this integration, the region’s biochar production and application potential may remain underutilised.
Another critical barrier Luisa mentions is the lack of awareness among farmers. Many are unfamiliar with biochar’s benefits or misunderstand its applications. While some international NGOs and local agricultural organisations have begun tackling this challenge, their efforts are often fragmented. A coordinated approach is essential to improving education, raising awareness, and fostering the adoption of biochar in the region.
Another significant challenge in the Latin American biochar market is the lack of sufficient financing mechanisms. New biochar producers face high initial production costs and struggle to achieve economies of scale. Biochar production is capital-intensive, and the absence of subsidies in the sector further exacerbates this issue.
In addition, certain innovative feedstocks in Latin America such as sugarcane bagasse and coffee husks, are promising; however, they often require costly pre-treatment processes like drying or size reduction. These pre-treatment costs increase the overall investment required for biochar project development.
Moreover, the absence of a developed carbon or biochar market further limits opportunities for producers to sell their end product or target projects. Addressing these financial hurdles is essential to unlocking the full potential of the biochar sector in Latin America
Another significant barrier to the biochar sector is its distance from technology and innovation hubs. The region lacks access to locally manufactured, scalable production technologies. Most available options are small-scale pyrolysis units, while larger-scale technologies are typically imported from regions like Asia. This reliance on external technologies, Luisa says, not only increases costs but also presents logistical challenges, limiting scalability and innovation, as Luisa points out.
Moreover, Latin America has limited access to research and innovation hubs dedicated specifically to biochar. While international partnerships are beginning to bridge this gap, they remain underdeveloped. Organizations such as the International Biochar Initiative (IBI), the European Biochar Initiative (EBI), and the Instituto Latinoamericano del Biochar are leading efforts to establish collaborations and develop local research capabilities. These partnerships demonstrate a promising path forward, laying the groundwork for regional innovation and a greener future.
Lastly, infrastructure challenges pose a significant obstacle to developing a robust biochar market in Latin America. High transportation costs make it difficult to move biomass and biochar across large distances, particularly in rural areas where infrastructure remains underdeveloped. This creates logistical inefficiencies that increase overall production costs and limit scalability.
Additionally, the inconsistent availability of biomass across regions further complicates supply chains, making it challenging to establish a reliable and cost-effective production process. Addressing these infrastructural barriers is essential for creating a sustainable and efficient biochar market in the region.
Integrating biochar into Latin America’s emerging carbon markets presents significant challenges. While countries like Mexico, Brazil, and Colombia are leading initial efforts, systemic issues—such as the lack of universal certification standards—continue to hinder broader market integration.
The absence of cohesive frameworks complicates the adoption and scaling of biochar within the region’s carbon markets. As the market structure evolves, addressing these challenges will be essential to fully unlock the potential of biochar in Latin America’s sustainability and climate action initiatives.
Universal certifications are critical to the development of the biochar sector, yet they remain underdeveloped in the Latin American market. Certifications such as the Core Carbon Principles (CCP) provide biochar with a recognised label, ensuring legitimacy in the market.
The CCP label verifies that the biochar and its associated carbon credits truly represent greenhouse gas (GHG) emission reductions while delivering meaningful social and environmental benefits, particularly to local communities.
By fostering market trust, the CCP label encourages investment and validates the quality of biochar for specific applications, such as in agriculture or construction materials. The credibility of these standards is essential for both inter- and intra-market biochar trade. For Latin America’s biochar market to connect effectively with global markets, obtaining CCP approval is a crucial step toward integration and long-term growth.
A key obstacle for the Latin American biochar market is the lack of accessible laboratories capable of conducting the necessary characterisation tests for internationally recognised certifications. According to Luisa, biochar producers in the region face logistical and financial challenges because certified laboratories, such as those required for International Biochar Initiative (IBI) or European Biochar Certificate (EBC) standards, are located in countries like Germany and the United States.
To obtain certifications and the Core Carbon Principles (CCP) label, Latin American organisations rely heavily on external registries such as Puro, Verra, or the World Biochar Certificate. These registries provide scientific frameworks to measure biochar’s impact on greenhouse gas (GHG) emissions, but this dependence increases costs for producers and exacerbates disparities between Latin America and other global markets.
Luisa also notes that many producers in the region lack sufficient guidance on Measurement, Reporting, and Verification (MRV) processes, which are essential for earning CCP labels. These processes are often costly, labour-intensive, and inaccessible without proper training or support. Addressing these barriers through subsidies, training programs, or partnerships with international certification bodies could significantly enhance certification accessibility for Latin American producers.
The financial burdens, geographical distances, and lack of guidance have led to the underutilisation of certification protocols like Puro and Verra in the region. Streamlining certification procedures and adjusting costs to align with the financial realities of producing countries is critical. Without these changes, Latin American carbon credits will remain harder to access compared to those from more developed markets in North America or Europe.
According to Luisa, the biochar market in Latin America is highly fragmented. In rural areas, local production is dominated by small-scale and artisanal biochar producers. At the same time, larger commercial players are beginning to establish themselves in the region, particularly in countries like Bolivia, Brazil, Mexico, and Colombia, with examples including Inspiratus Tech, Caligenia, Exomad Green, and NetZero.
This dual market structure—where small-scale efforts coexist alongside emerging industrial players—highlights both the potential and the challenges of the region. Strengthening partnerships and fostering regional initiatives will be critical to driving growth and innovation in the Latin American biochar sector, enabling it to scale sustainably and inclusively.
While the agricultural sector remains the primary driver of biochar adoption in Latin America, the market rapidly expands into other fields. Industrial applications, such as energy production and construction materials like cement and concrete, are among the most notable examples. Additionally, innovative uses, such as wastewater treatment, are gaining momentum, demonstrating the versatility of biochar as a solution to diverse environmental challenges. The integration of biochar into various fields will contribute to its market growth in Latin America.
To fully unlock the potential of Latin America’s biochar market, targeted efforts must address financial, infrastructural, and regulatory barriers. Strengthening carbon markets, integrating biochar into these systems, streamlining certification processes, and fostering regional collaboration are crucial steps toward sustainable growth.
The global demand for sustainable agriculture and carbon removal is increasing. Latin America is uniquely positioned to play a transformative role in the biochar sector. The urgency to find creative solutions to climate challenges has never been greater, and with maturing carbon markets and growing biochar production, the region is poised to make a significant impact in addressing the climate crisis.
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