Biochar is a key player in carbon credits and climate mitigation, offering a sustainable solution for carbon sequestration and reducing greenhouse gas emissions. This review explores the role of biochar in carbon markets, its potential for generating carbon credits, and its application in climate change mitigation. Biochar, a form of charcoal produced from organic materials, permanently stores carbon in soils, enhancing soil quality and agricultural productivity. It is recognized as a carbon dioxide removal (CDR) method, contributing to carbon neutrality and sustainable development goals. The carbon market, including compliance and voluntary markets, provides financial incentives for emissions reduction and carbon sequestration. Biochar's integration into carbon trading systems encourages investments in the biochar industry and promotes sustainable practices. The review highlights case studies demonstrating biochar's effectiveness in generating carbon credits and discusses the evolving carbon removal marketplace. It also addresses knowledge gaps, areas of concern, and research priorities regarding biochar's implementation in carbon credits. The study emphasizes the need for continued research, transparency, and international cooperation to fully realize biochar's potential in climate change mitigation. Biochar's versatility and scalability make it a promising technology for reducing atmospheric CO2 levels and supporting sustainable development. The review underscores the importance of standardizing carbon markets and ensuring the credibility of carbon credit mechanisms to enhance their effectiveness in combating climate change.Biochar is a key player in carbon credits and climate mitigation, offering a sustainable solution for carbon sequestration and reducing greenhouse gas emissions. This review explores the role of biochar in carbon markets, its potential for generating carbon credits, and its application in climate change mitigation. Biochar, a form of charcoal produced from organic materials, permanently stores carbon in soils, enhancing soil quality and agricultural productivity. It is recognized as a carbon dioxide removal (CDR) method, contributing to carbon neutrality and sustainable development goals. The carbon market, including compliance and voluntary markets, provides financial incentives for emissions reduction and carbon sequestration. Biochar's integration into carbon trading systems encourages investments in the biochar industry and promotes sustainable practices. The review highlights case studies demonstrating biochar's effectiveness in generating carbon credits and discusses the evolving carbon removal marketplace. It also addresses knowledge gaps, areas of concern, and research priorities regarding biochar's implementation in carbon credits. The study emphasizes the need for continued research, transparency, and international cooperation to fully realize biochar's potential in climate change mitigation. Biochar's versatility and scalability make it a promising technology for reducing atmospheric CO2 levels and supporting sustainable development. The review underscores the importance of standardizing carbon markets and ensuring the credibility of carbon credit mechanisms to enhance their effectiveness in combating climate change.