Baking powder and baking soda are both leavening agents, but there are some key differences. Baking powder is a dry, chemical leavening agent that contains baking soda, an acid, and a moisture absorber. When baking powder is exposed to moisture and heat, carbon dioxide is released and causes the dough or batter to rise. Baking soda is a pure form of sodium bicarbonate that requires an additional acid in order for it to activate and cause the dough or batter to rise.