BMW Group has taken its first steps into biochar-based carbon removal, retiring 25,000 tonnes of CO2 (tCO2e) credits last year as part of its broader environmental strategy. The German automaker aims to offset up to 10% of its emissions by 2050 using carbon dioxide removal (CDR) credits, according to its latest ESG report.
A pile of biochar on green grass, with a white BMW car on a forest road in the background. AI generated picture.
The credits were sourced from projects operated by Atmosfair and Firstclimate, two Germany-based project developers specialising in biochar. Certified under the Global Biochar C-Sink standard, the credits mark BMW’s entry into a growing sector of engineered carbon removal. The standard itself was introduced in June 2024 by Switzerland-based Carbon Standards International, updating the previous 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 report states.
BMW’s initial retirement of 25,000 tCO2e worth of biochar credits came at an estimated cost of $3.25 million, assuming an average market price of $130 per tonne. The company reported $11.9 billion (€10.9 billion) in pre-tax profits in 2024, making this a relatively small but strategic investment in carbon sequestration.
Biochar, a carbon-rich material produced through pyrolysis, offers a long-term solution for storing carbon in soils while enhancing agricultural productivity. Atmosfair, one of BMW’s suppliers, operates a biochar project in eastern India, capturing around 32,900 tCO2e annually. Firstclimate, in partnership with Carbonity, manages a biochar production facility in Port Cartier, Quebec.
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Looking ahead, BMW plans to retire between 46,000 tCO2e and 57,500 tCO2e of biochar credits across 2025 and 2026, signalling a deeper commitment to scaling carbon removal solutions.
BMW has committed to achieving net-zero emissions by 2050, pledging to cut its Scope 1, 2, and 3 emissions by at least 90% compared to its 2019 baseline of 150.1 million tCO2e. The company has emphasised that offsets will only be used for emissions that ‘cannot be technically reduced further’.
With up to 10% of its total emissions set to be addressed through carbon removal, BMW could ultimately retire as much as 15 million tCO2e in credits by mid-century. By investing in biochar at an early stage, BMW aims to ‘foster the scaling of promising CDR technologies’ and secure a reliable supply of removal credits to meet its long-term climate commitments.
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