Study shows how low carbon biofuels could revolutionize ag sector’s role in climate mitigation

August 27, 2025 |

In Illinois, as global carbon emissions continue to hit all-time highs, strategies for achieving net-zero emissions have only become more important. Specifically, bioenergy has an important role in displacing fossil fuels and removing carbon dioxide from the atmosphere through photosynthesis.

Therefore, a team of economists from the University of Illinois Urbana-Champaign, the University of California-Berkeley and the U.S. Department of Agriculture, including a Michigan State University environmental scientist came, together to propose a groundbreaking “climate-smart” biofuel policy that could revolutionize the agricultural sector’s role in mitigating climate change and improving ecosystems services.

The policy, informed by a recent study published in Science, aims to promote low-carbon biofuels for transportation and aviation, among other industries. The study highlights how farm-specific carbon intensity, or CI, scores can incentivize climate-smart agricultural practices that reduce greenhouse gas emissions and enhance soil carbon sequestration.

Biofuels, which are fuels produced from renewable sources such as plants or organic waste, have long been recognized as a key tool for reducing reliance on fossil fuels, but current policies often overlook the climate benefits of sustainable farming practices. The policy proposes to reward farmers for adopting management practices such as no-till farming, crop rotation, cover cropping, precision agriculture and emerging technologies like biochar and enhanced rock weathering. The environmental benefits from these practices lead to a lower carbon footprint of the bioenergy feedstocks then transformed to biofuels.

The policy would leverage existing biofuel markets, such as the Low Carbon Fuel Standard, or LCFS, to provide financial incentives for farmers. Unlike traditional conservation programs, which are limited by budgets, this market-driven approach would scale based on policy targets. Farmers would benefit from premium prices for low-carbon feedstocks, while biorefineries could reduce their supply-chain emissions.

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Category: Policy

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