Oregon Biochar Solutions and Oka bring the first-ever insured biochar credits to the voluntary carbon market.
The fight against climate change just got a significant boost with the launch of the world’s first insured biochar credits. This groundbreaking collaboration between Oka, The Carbon Insurance Company, and Oregon Biochar Solutions will increase trust and investment in the Voluntary Carbon Market (VCM).
A charcoal-like substance, biochar is produced by heating biomass in an oxygen-limited environment and can store carbon for thousands of years when incorporated into soil. This helps offset carbon emissions from burning fossil fuels. However, biochar improves soil fertility by increasing water retention, promoting beneficial microbial activity, and reducing the need for chemical fertilizers.
Indigenous people worldwide have been using a basic form of biochar in agriculture for a surprisingly long time – estimates suggest practices date back thousands of years, potentially as far back as 5,000 years.
See also: Coffee Biochar Concrete Carbon Sequestration.
Biochar production can utilize various biomass waste materials, such as agricultural residues, forestry trimmings, and even sewage sludge, diverting them from landfills and creating a valuable product. The combined benefits of carbon storage and waste reduction, resulting in a valuable agricultural product, make it an extremely promising business opportunity.
Because it sequesters carbon in soil, biochar is inherently more stable than others. Some, like forests, may be cleared after political will wanes, burned, or otherwise destroyed due to naturally occurring and climate-related weather disasters. Others are even more permanent, storing carbon in mineralized form deep underground, but are expensive and do not result in any additional benefits.
Accordingly, the demand for biochar carbon removal is skyrocketing globally. In 2023, biochar carbon removal projects accounted for 94% of all carbon credit deliveries in the VCM. This surge in demand stems from several factors. Biochar projects are quick to implement, scalable, reliable, and affordable, offering those wonderful additional environmental benefits of waste stream reduction and fertilizer – beyond carbon sequestration. The World Economic Forum has dubbed biochar carbon removal the “jack of all trades” in carbon sequestration due to its versatility and effectiveness.
Oregon Biochar Solutions has been a pioneer in the biochar industry since its inception. Committed to providing high-quality biochar, industrial-scale production capacity, and sustainable production practices, Oregon Biochar Solutions has consistently pushed the boundaries of what’s possible. In 2021, Oregon Biochar Solutions achieved two significant milestones: becoming the first project in the Americas to sell carbon credits and being certified under the rigorous Puro.Earth standard for responsible biochar production.
Oregon Biochar Solutions’ commitment to innovation continues with its groundbreaking partnership with Oka. By offering the world’s first insurance solution for biochar credits, Oka is addressing a critical need in the VCM: risk mitigation. With demand for biochar credits surging, buyers require additional assurances that their investments are protected against potential project failures or unforeseen circumstances that could invalidate the carbon removal claims associated with the credits. Of course, Oka would not be willing to insure these credits if they weren’t high quality, further reinforcing the positive overall perception of biochar credits to potential purchasers.
Chris Slater, Founder & CEO of Oka, emphasizes the importance of this partnership: “Oka is thrilled to be the first insurance provider for biochar credits. Partnering with Oregon Biochar Solutions was a natural fit.” He further highlights how insurance can act as a catalyst for investment: “Amidst the growing demand for biochar credits, risk mitigation solutions like ours will guide capital towards the most impactful and high-quality projects.”
This groundbreaking collaboration on biochar credits signifies a significant step forward for the VCM. By offering insured biochar credits, Oka and OBS are building trust and paving the way for increased investment in high-quality carbon removal projects, ultimately contributing to a more sustainable future.
