There is growing interest in whether the EU ETS and UK ETS — the world’s largest compliance carbon markets — could become major buyers of durable carbon removals (CDR) such as biochar.

A recent analysis suggests the answer is: not yet… and not guaranteed.

Here are the key points for our community:

1. ETS systems are still focused on reducing emissions, not buying removals

Their primary mandate is internal abatement. Allowing CDR at scale would require political approval, new rules, and alignment across multiple agencies — all of which take time.

2. The inclusion of CDR is possible, but uncertain

Even if removals are eventually allowed in ETS markets, implementation could take until the late 2020s or 2030s. It won’t be an immediate demand driver.

3. High-integrity requirements will shape which CDR pathways qualify

ETS integration would require:

• Demonstrated permanence

• Strong MRV

• Clear feedstock integrity

• Risk management frameworks
  Biochar aligns well with these expectations, but producers must be ready for strict compliance-level scrutiny.

4. Short-term demand will continue to come from voluntary and buyer-led markets

Corporate procurement, standards like Puro and Isometric, Article 6 pilots, and sustainability-driven buyers remain the most reliable sources of demand today.

5. Strategic opportunity for the biochar sector

If compliance markets eventually open to removals, biochar could become a valuable option for hard-to-abate industries needing durable, measurable, cost-effective negative emissions.
This makes early policy and technical readiness important for our sector.

💬 Questions for our EU & UK Members

1. How do you see the political and regulatory pathway for allowing durable CDR (including biochar) into the EU or UK ETS in the next 3–5 years?

2. From your perspective on the ground, what signals — positive or negative — are you seeing from policymakers, regulators, or major emitters about integrating CDR into compliance markets?

We’d love to learn from your experiences and insights.