Biotechnology: The Affordable Solution for Carbon Removal
The Cost-Effectiveness of Biotechnology
Biotechnology is generally a more affordable carbon removal method than Carbon Capture and Storage (CCS).
Biochar vs. Direct Air Capture (DAC)
For example, biochar, a carbon-rich substance derived from plant matter, costs only $80 to absorb one tonne of CO₂. Its low cost is attributed to low energy requirements and technological maturity.
In contrast, Direct Air Capture (DAC), a leading CCS method, costs up to $600 per tonne—making it 7.5 times more expensive.
Factors Driving Down Biotech Costs
Furthermore, the price of biotechnology is expected to drop for two key reasons:
1. Maturing Technology
As technology matures and research advances, production becomes less costly. Researchers discover cheaper materials and more efficient designs, which drives down costs over time.
For example, there was a substantial increase in publications and research related to biochar between 2016 and 2023. During the same period, biochar prices declined from $2,740 per tonne to a minimum of $600 per tonne—an 80% reduction.
With increased government prioritization, we can expect to see more research and, consequently, decreasing prices.
2. Market Growth
Biotechnology dominates the carbon removal market—biochar alone made up 92.9% of all durable CO₂ removal in 2023. The global biochar market is projected to reach $3.1 billion by 2034.
When a market expands, more companies enter to meet the growing demand. This increases competition and boosts supply, which pushes prices down.
Economic Benefits of Biotechnology
Biotechnology doesn’t just reduce emissions—it also boosts the economy.
Genetically Modified Organisms (GMOs)
GMOs can absorb more CO₂ due to two key traits:
- Increased Pore Capacity: A recent study from the University of Wisconsin-Madison demonstrated that modifying a gene in plants caused them to absorb 30% more carbon dioxide than normal plants.
- Reduced Need for Chemical Pesticides: Specific plant genes can be modified to make them pest-proof, eliminating the need for chemical pesticides. A 2014 analysis found that this reduces pesticide use by 37%, cutting 27 million tonnes of CO₂ annually, as pesticide production emits 71 million tonnes of CO₂ yearly.
In addition, GMOs increase crop yields by 22% globally, helping to address food insecurity and drive economic value. The GMO crops and seeds market is projected to generate $37.5 billion in 2025, with the broader genetically modified foods market exceeding $130 billion.
Bioproducts from Renewable Resources
Bioproducts are materials and chemicals derived from renewable biological resources.
They offer significant environmental benefits because their production is fossil-free, which helps reduce CO₂ emissions. Consider two key observations:
- Replacing fossil-based plastics with bio-based ones could cut 73 million tonnes of CO₂ annually in Europe alone—the equivalent of 20 million flights.
- Research indicates that bio-based fertilizers can cut current carbon emissions by 80% by 2050.
There has been an increasing demand for bioproducts due to consumer awareness and government regulations. According to the European Commission, about 73 percent of European customers want to buy products with a minimal impact on the environment.
Consequently, the bioproducts market is expanding rapidly and creating more job opportunities. The U.S. Department of Agriculture reported that the biobased products industry created 4.2 million jobs in a single year, accounting for 15% of the jobs created that year.
Compound Socio-Economic Impacts
- Food Security: GMOs increase food production, addressing global hunger. With over 295 million people facing food insecurity, a 22% yield boost could help reduce that number by nearly 65 million people.
- Poverty Reduction: The 4.2 million jobs created by the bioproducts sector can significantly impact unemployment. For context, if a country had 7.1 million unemployed people, these jobs could cover over 60% of that total, easing economic hardship.