Indonesia is intensifying its efforts to elevate its carbon market’s international competitiveness by forging strategic partnerships and aligning with global standards. Key initiatives include a Mutual Recognition Agreement (MRA) between the Indonesian Greenhouse Gas Emissions Reduction Certification (SPEI) and Verra’s Verified Carbon Standard (VCS), an agreement to adopt methodologies with Puro.earth, and issuing guidance for projects certified under the Gold Standard for the Global Goals (GS4GG). These efforts build on existing MRAs with the Global Carbon Council and Plan Vivo, and aim to create a carbon market that is transparent, inclusive, and high-integrity. Indonesia is focusing especially on two sectors using “nature‐based” approaches and three sectors under technology‐based methodologies.
Under Indonesia’s multi-scheme Carbon Economic Value (Nilai Ekonomi Karbon, NEK) framework managed by KLH/BPLH, the country has already facilitated transition of 14 project proponents into Article 6.4 of the Paris Agreement, and 60 into Article 6.2, including collaboration with Japan. Further, under the MRA scheme, 29 projects are registered under the Gold Standard, with 19 having certified designs, producing approximately 4.6 million tons CO₂ credits. Collaboration with Verra is projected to yield around 17.27 million tons CO₂eq annually, with targets for unit issuance by mid-2026. Leaders emphasize that ensuring credibility, integrity and inclusivity is vital for Indonesia’s green transition, energy justice, and to fulfill its national climate commitments (NDCs), including leveraging profits from the carbon market to support mitigation and adaptation efforts.
