Policy Support for Biochar? Review and Recommendations

Despite the increasing research effort on the promising environmental benefits of biochar, a (co)product of thermal processing of biomass, the adoption of biochar as a sustainable soil management strategy has not yet... [ view full abstract ]

Despite the increasing research effort on the promising environmental benefits of biochar, a (co)product of thermal processing of biomass, the adoption of biochar as a sustainable soil management strategy has not yet accelerated. To a large extent, wide-spread adoption of biochar suffers from economic challenges and lack of distinct policy support. In this research, we investigated the US policies and programs that have directly supported biochar production and use or can be restructured to support biochar industry. These include a wide-range of programs that provide incentives to generate bio-based products and those that support soil preservation practices.

We group the programs into three categories of 1) commercial financial incentives (loan guarantees, grants, tax credits, and matching payments), 2) non-financial policy support, and 3) research and development funding, which include demonstration projects. Our analysis provides evidence that the current policy support for biochar is minimal. We also show that a number of issues contribute to a delay for government support for soil application of biochar: 1) wide variability in the properties of produced biochar, which in turn contribute to uncertainty in performance; and 2) lack of development of product certification or standards for biochar. A lack of standards conveys no basis for comparison among biochars to evaluate whether they can comply with regulations and can receive support.

In most cases, biochar is an end product. Therefore, it cannot receive incentives through programs targeting intermediate bio-based products. Despite this fact, other products generated at the biochar facility such as bio-oil or wood vinegar may be eligible to receive such credit, which helps support the economics of the biochar producing facility.

Our findings, however, indicate an incremental increasing government support for all bio-based products, over time. Compared to more established bio-based products like biofuels, biochar is not the center of policy makers’ attention. While biofuels such as conventional ethanol have received incentives as a part of a long-term plan to diversify nation’s energy portfolio, biochar may warrant greater support to effectively constitute a part of long-term soil and food security strategy, as well as capture general environmental benefits provided through, for example, biochar’s nitrogen remediation capabilities. To accelerate the adoption of biochar, however, such long-term plans need to be considered a national policy priority.