Biochar Investment: Level the playing field

For decades, artificial fertilisers have enjoyed a structural advantage—not because they are the best solution to crop yield, but because they were subsidised into dominance. Agricultural councils are now amongst the highest GHG emitters, as seen in DESNZ report DESNZ Release July 2025. Its time to do things differently for the sustainability of farming and climate mitigation.

The Hidden History of Fertiliser

1. Post-war policy made yield king- Scarcity was urgency
   In the UK and across Europe, agricultural subsidies under the Common Agricultural Policy (CAP) prioritised volume over soil health. Artificial fertilisers became the foundation of modern farming—out of necessity.

2. Energy subsidies lowered production costs
   Nitrogen fertiliser production is fuel-hungry. Cheap, often subsidised fossil energy—particularly natural gas—kept prices low and distorted market signals.

3. No penalty for pollution
   Fertiliser runoff drives nitrate pollution, biodiversity loss, and nitrous oxide emissions (a greenhouse gas 273 x stronger than CO₂- IPCC AR6). These environmental costs are not priced in—effectively acting as an invisible subsidy.

4. Global market distortion
   In many countries, fertilisers like Urea are still directly subsidised for farmers in places like India—setting artificially low benchmarks that new regenerative entrants will struggle to match.

Biochar: Break the dependency cycle created from post war scarcity

We need to rethink. Biochar does more than fertilize:

• Removes carbon from the atmosphere and makes soil a carbon sink

• Improves soil health and biodiversity

• Reduces nitrous oxide emissions and retains nitrates reducing run-off

• Builds drought resilience and nutrient efficiency

• Generates value from local biomass that needs processing regardless

• Biochar is a long-term soil amendment, benefits last years.

• Generates local renewable energy

• Improves animal health when applied to bedding

Our Case

If fertilisers were subsidised into the market, biochar needs policy and start-up investment to level it. Let’s get biochar onto farms now to level the playing field.

• Invest in biochar infrastructure and distribution now - CDR technologies will be part of the UK Emissions Trading Scheme (UK ETS) by 2029 and biochar is a proven method.

• Support farmer adoption trials and encourage biochar application for carbon removal, as well as soil improver

• Integration into waste policy and recycling definitions

• Tax. A Carbon Border Adjustment Mechanism (CBAM) is set to begin on 1 January 2027, applying a new carbon levy to imports of fertilisers. A further step forward.

• No VAT on most fertilisers for agriculture (zero-rated); No VAT should be charged on biochar- currently standard 20% and not applicable to flat rate (FRA)

Why Now?

The DESNZ 2023 emissions report is clear DESNZ Release July 2025:
Agricultural councils need more help to achieve GHG reduction. Biochar offers a solution. Reduce the dependency on fossil-fuel intensive fertilizers, rehabilitate soil long-term, build climate resilience, enhance soil capacity for carbon absorption and retention and enhance biodiversity. CDR technologies will be part of the UK Emissions Trading Scheme (UK ETS) by 2029, so we need to scale up now.