Carbon credits from biowaste disposal: How they can be generated and used

Biowaste sorting projects (e.g. food or green waste) can prevent methane emissions from landfills and generate credits for CO₂e emissions avoidedBio-waste can be converted into carbon credits in several ways — the most popular are two methods:

  • Biochar (waste pyrolysis): Organic biomass, such as agricultural or forest residues, is processed in a low-oxidation environment (pyrolysis) and converted into stable carbon that is stored in the soil for hundreds to thousands of years. Biochar production can sequester up to 3 tons of carbon per ton of dry material (Green).
  • Anaerobic digestion or composting of biowaste: At the landfill site, where waste releases methane (approximately 28–34 times more potent greenhouse gas than CO₂), organic waste is treated in digesters or composted. This significantly reduces methane emissions, for which credits are issued CO₂e emissions avoided

💼 2. Standards and markets

Biochar projects are among the most credible forms of carbon neutrality:

  • Standards like Puro.earth or Carbon Standards International (e.g. Puro's CORCCHAR methodology) guarantee the quality, measurability and long-term stability of carbon sequestration (Puro.earth Oy).
  • Registry system VERRA is preparing a biochar methodology for certification according to VM0042 or VM0014, which will enable further market expansion (Carbon Credits).
  • A report from the end of 2023 shows that biochar accounted for more than 90 % of all carbon removal credits (CDRs) delivered

🧑‍🤝‍🧑 3. Who bought bio-waste carbon credits?

  • Company Microsoft has signed a contract for 4.9 million tons of carbon credits with the Vaulted Deep project, which injects digested bio-waste underground for permanent storage.
  • Company Google signed a contract with India's Varaha project to purchase up to 100,000 tons of biochar credits by 2030.
  • Insurance company Swiss Re secured at least 70,000 tons of biochar credits from Carbonfuture (project in Bolivia).

These agreements show that bio-waste credits are among the most desirable and verified carbon neutrality options in today's economy.

📊 4. Price and market trends

  • The supplied biochar credits are usually sold for $140–160/tCO₂e for Indian origin and lower for artisanal variants (~$100–120/t)
  • Contributors like Puro.earth report that the market volume of biochar credits grew 20-fold from 2005 to 2021.
  • The EU and the US are preparing legislative frameworks (European Commission certification framework, Inflation Reduction Act) that will support the further expansion of these projects

🌍 5. Benefits of bio-waste carbon credits

  • Carbon durability: biochar binds carbon for a long time—hundreds to thousands of years (Cleantech Group, Carbo Culture).
  • Multiple benefits: improves soil fertility, water retention, promotes biodiversity and reduces the need for chemical fertilizers (Puro.earth Oy, Cleantech Group).
  • Reducing the risk of greenwashing: biochar projects provide clear, measurable and auditable results, which is popular for financial transparency and buyer confidence.

🧾 Summary

Carbon credits based on bio-waste disposal exist and are becoming a significant pillar of carbon neutralityThe main forms include:

  • Biochar credits (CDR) – permanent carbon sequestration in soil,
  • Credits for reduced emissions from anaerobic projects and composting.

These credits are certified according to standards such as Puro.earth or VERRA and have received support and investment from technology giants such as Microsoft, Google and financial institutions such as Swiss Re. Spring

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