Indonesia is preparing to broaden its carbon trading partnerships through Mutual Recognition Agreements (MRAs) with several countries, including Norway, according to Environment and Forestry Minister Hanif Faisol Nurofiq.
Speaking at a signing ceremony between the Ministry of Environment and the Gold Standard Foundation in Jakarta on Thursday, Hanif said the country is building on its existing MRA with Japan and is now pursuing similar agreements with additional international partners.
“The MRA that is most advanced is with Norway. Our discussions have entered a more detailed phase, and we are hopeful for a more intensive negotiation process,” he stated, noting that the agreement with Norway could be finalized within the next one or two weeks.
Indonesia is also exploring MRA opportunities with other countries, including South Korea and Denmark, as part of its strategy to expand international cooperation in carbon trading.
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In parallel, Indonesia is working to strengthen partnerships with leading international carbon standards organizations. Following the recent agreement with the Gold Standard Foundation, the government is considering similar collaborations with Verra and Plan Vivo.
Hanif emphasized that carbon trading is a key component of Indonesia’s Carbon Economic Value (NEK) framework, which underpins national efforts to reduce greenhouse gas (GHG) emissions in line with the country’s Enhanced Nationally Determined Contribution (NDC) targets under the Paris Agreement.
He also highlighted that Indonesia’s carbon credits are not solely based on the energy sector but are supported by its vast natural ecosystems. These include tropical forests, peatlands, and mangrove forests, all of which serve as important carbon sinks.
Indonesia’s MRA with Japan, signed during the 29th UN Climate Change Conference (COP29) in Azerbaijan last year, serves as a model for future bilateral agreements. The arrangement operates under Article 6.2 of the Paris Agreement, which encourages countries to recognize each other’s carbon crediting systems and support global emissions reduction goals through international cooperation.
Editing by Reiner Simanjuntak
