Policy and cost analysis for biochar development: a global review and Northeast US case study

Abstract

Biochar is a carbon-rich material created through the pyrolysis of organic biomass, offering multiple environmental benefits for soil improvement and climate change mitigation. While its use is expected to grow, particularly in the Northeast United States, widespread adoption faces challenges, including social distrust, economic hurdles, and high production costs. This study uses a structured narrative review of global policies to identify instruments such as financial, nonfinancial, and research & development that could inform decision-makers on biochar policy. We also developed a techno-economic breakeven model to quantify the impact of policies like input subsidies and tax credits on production costs in the Northeast United States. Our analysis shows that high production and entry costs require strategic policy interventions, including market-creation policies and regulatory clarity for feedstock procurement. Global examples showcase varied successful strategies, ranging from Australia’s carbon credit systems to Japan’s R&D support. We recommend that the Northeast US establish scientific certainty and trust, foster a regional network with Canada, and implement multi-instrument strategies that combine incentives, regulatory adjustments, and continued R&D to drive large-scale commercialization. These findings provide a roadmap for policy makers to help biochar reach its full potential in the region.