Fondation Valery: Financing Sustainable Carbon Sequestration: “Biochar-as-a-Service” for Swiss Farmers

Context and background

Switzerland contributes just 0.1% of global greenhouse gas emissions but has set ambitious targets to cut emissions by 50% by 2030 and reach net-zero by 2050. Given its limited land availability and dense land use, large-scale local carbon sequestration options such as reforestation are constrained, making international offsetting more common. However, local solutions are increasingly needed to balance climate strategies. Biochar has emerged as a particularly promising option: it locks away carbon quickly and durably while improving soil health, reducing nitrous oxide emissions, and enhancing crop resilience. Farmers, who already face economic pressures and growing environmental demands, could play a key role in supplying biomass for biochar production. Yet, given that nearly half of farm income already comes from subsidies, new approaches must generate socio-economic value without adding burdens—highlighting the potential of plug-and-play business models that create income streams while supporting climate goals.

Project description

This project explores a Biochar-as-a-Service business model that empowers farmers to contribute to climate mitigation while improving their livelihoods. The core challenge lies in choosing between centralized and mobile pyrolysis setups, balancing logistics, energy efficiency, and costs. In addition to biochar, pyrolysis produces byproducts like syngas, hydrogen, and bio-crude oil, which can enhance profitability and self-sufficiency. Certified biochar also offers carbon credits, which are scarce and valuable in Switzerland. Students will assess the market potential of this model, design a financially viable and scalable solution, and explore blended finance structures—combining philanthropic, public, and private capital—to support development and reduce risk. By doing so, they will engage with cutting-edge themes in sustainable finance such as servitization, impact credits, and blended finance, gaining practical experience in building impact-driven investment models that align economic and environmental goals.

This project is part of the Transformative Projects: teams of 3-4 SMT students from different disciplines work together over three months on a topic developed by a company with the objective to propose new perspectives and solutions that can have the potential to transform industry or societal practices.