Indonesia and Verra sign agreement to strengthen carbon markets
Saturday, October 4 2025 - 08:45 AM WIB
By Romel S. Gurky
Indonesia has signed a mutual recognition agreement with carbon credit certifier Verra, a move aimed at increasing investment in the country’s carbon markets and aligning domestic climate efforts with international standards, the two parties said on Friday.
The agreement allows projects registered under Verra’s Verified Carbon Standard (VCS) Program to be simultaneously recorded in Indonesia’s national carbon registry, known as SRN-PPI. While credits—Verified Carbon Units (VCUs)—will continue to be issued and managed through Verra’s registry, key project data will be mirrored in the Indonesian system to support government oversight and climate accounting.
“Indonesia is poised to lead Southeast Asia in generating high-integrity carbon credits,” Verra CEO Mandy Rambharos said in a statement. “This agreement reflects a shared commitment to global climate goals.”
Indonesia’s deputy environment minister, Ary Sudijanto, said the partnership would help harmonize global and national carbon governance and support the country’s climate targets under the Paris Agreement.
Read also: Indonesia, Verra to sign MRA for carbon credits
The deal is expected to streamline the process for project developers by allowing parallel registration with both systems. Projects must complete their registration with SRN-PPI before finalizing their listing with Verra.
Verra and the Ministry of Environment will also develop a technical guidance document outlining compliance requirements under the agreement. The MRA applies to all project types approved under Verra’s existing methodologies.
The two sides said the agreement would also support credit issuance under Article 6 of the Paris Agreement, which governs international carbon trading. VCUs used in voluntary markets may still require separate approval from Indonesian authorities.
Indonesia, which holds one of the world’s largest tropical forest reserves, has been seeking to strengthen the credibility of its carbon market to attract greater climate finance and meet its emissions reduction targets.
Editing by Reiner Simanjuntak