Indonesia expands carbon trading agreements with multiple countries

Jakarta (ANTARA) - Environment Minister Hanif Faisol Nurofiq announced that Indonesia is currently preparing a Mutual Recognition Agreement (MRA) on carbon trading with several countries, including Norway.

Speaking after the MRA signing between the Ministry of Environment and the Gold Standard Foundation here on Thursday, Minister Nurofiq stated that Indonesia plans to expand mutual recognition agreements on carbon trading, building on the MRA it signed with Japan last year.

“The MRA that is most ready is with Norway. Discussions with Norway have already reached a further detailed stage, and we are hopeful for a more intensive negotiation process,” he noted.

According to Nurofiq, the MRA between Indonesia and Norway is expected to be finalized within one or two weeks.

In addition to Norway, Indonesia sees the potential to expand MRA cooperation with other countries, including South Korea and Denmark.

Indonesia is also seeking collaboration with international carbon standards, following the signing with the Gold Standard Foundation. Similar partnerships with entities such as Verra and Plan Vivo are also being explored.

Minister Nurofiq further explained that carbon trading is one of the mechanisms under the Carbon Economic Value (NEK) framework, which supports efforts to reduce greenhouse gas (GHG) emissions.

The minister said this aligns with Indonesia's Enhanced Nationally Determined Contribution (NDC) targets.

He emphasized that Indonesia’s carbon credits are not limited to the energy sector but also come from its rich biodiversity and carbon-storing ecosystems, including tropical forests, peatlands, and mangrove forests.

Indonesia and Japan established an MRA during the 29th UN Climate Change Conference (COP29) in Azerbaijan last year.

The agreement serves as a model for bilateral cooperation under Article 6.2 of the Paris Agreement, which promotes mutual recognition of carbon crediting systems among countries.