Indonesia Returns to Global Carbon Markets with Enhanced Safeguards
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📰 The quick summary: Indonesia has lifted its four-year ban on international carbon trading, establishing stronger safeguards through partnerships with leading carbon certifiers to improve transparency and attract investment for rainforest conservation.
📈 One key stat: Indonesia has ended a four-year freeze on overseas carbon transactions, potentially unlocking significant value from its vast rainforest conservation assets that are among the largest carbon offset suppliers globally.
💬 One key quote: “Government support gives confidence in carbon markets,” Fiona Perera, Gold Standard
1️⃣ The big picture: Indonesia has officially reentered the global carbon market after a four-year hiatus, marking a significant policy shift under President Prabowo Subianto. The Southeast Asian nation has lifted its ban on international carbon trading through a presidential decree that authorizes cross-border trading of carbon credits under both national standards and global frameworks. This revival comes with enhanced credibility measures, including mutual recognition agreements with leading certifiers like Verra, Gold Standard, and the Global Carbon Council. Indonesia aims to monetize its vast rainforest assets while implementing stronger safeguards to address previous concerns about transparency and domestic climate priorities.
2️⃣ Why is this good news: This development creates a new avenue for financing critical rainforest preservation and reforestation projects under the REDD+ program in one of the world’s most biodiverse regions. The mutual recognition agreements with top carbon certifiers enhance market credibility and bring much-needed standardization to ensure high-quality offsets. New safeguards like decentralized real-time carbon registries improve transparency and prevent double-counting issues that previously plagued carbon markets. Companies seeking high-integrity offsets gain access to projects from Indonesia, which was previously among the largest suppliers of carbon credits globally. The revival signals growing confidence in carbon markets as legitimate climate finance tools when backed by proper governance.
3️⃣ What’s next: Indonesia will establish a decentralized and real-time carbon registry to improve transparency and prevent double counting of emissions reductions. The country continues pursuing its commitment to achieve net-zero emissions by 2060 or sooner. Market participants can expect more international projects to become available as Indonesia leverages its partnerships with major carbon standard bodies.
Read the full story here: Carbon Herald – Indonesia Is Back In The Global Carbon Market, But With Stronger Safeguards
