BMW Invests in Biochar Carbon Removal, Retires First Credits

BMW Group is making strides in carbon removal, retiring its first batch of biochar-based CO2 credits as part of a larger sustainability strategy. The company retired 25,000 tonnes of CO2 (tCO2e) in 2024, marking its entry into the biochar carbon market. According to BMW’s latest ESG report, it plans to offset up to 10% of its emissions by 2050 through carbon dioxide removal (CDR) credits.

Close-up of a biochar on green grass, with a white BMW in the background on a forest road. AI generated picture.

The credits were sourced from projects developed by Atmosfair and Firstclimate, two Germany-based organisations working in the biochar sector. These credits were certified under the Global Biochar C-Sink standard, introduced in 2024 by Switzerland-based Carbon Standards International as an update to the European Biochar Certificate C-Sink framework.

‘The BMW Group has been supporting the development of new permanent CO2e sequestration methods since 2024 to drive the development of these carbon sinks,’ the company stated in its report.

BMW’s retirement of 25,000 tCO2e in biochar credits is estimated to have cost $3.25 million, based on an average market price of $130 per tonne. This move represents a small but strategic investment in engineered carbon removal, considering the company reported $11.9 billion (€10.9 billion) in pre-tax profits last year.

Biochar, a stable form of carbon produced through pyrolysis, provides a long-term solution for carbon sequestration while also improving soil health. Atmosfair’s biochar project in eastern India captures around 32,900 tCO2e annually, while Firstclimate has partnered with Carbonity to operate a biochar production facility in Port Cartier, Quebec.

Looking ahead, BMW has committed to retiring between 46,000 and 57,500 tCO2e of biochar credits over 2025 and 2026, reinforcing its commitment to scaling innovative carbon removal solutions.

BMW has set a target to reach net zero emissions by 2050, aiming to cut its Scope 1, 2, and 3 emissions by at least 90% from its 2019 baseline of 150.1 million tCO2e. The automaker has made it clear that offsets will only be used for emissions that ‘cannot be technically reduced further.’

With its long-term plan allowing up to 10% of emissions to be addressed via carbon removal, BMW could ultimately retire as much as 15 million tCO2e in credits by mid-century. By investing in biochar early, the company aims to ‘foster the scaling of promising CDR technologies’ and secure a steady supply of high-quality offsets to support its climate commitments.