Aligning Ambition and Action: What the Verra – SRN MRA Means for Indonesia’s Carbon Market
- 2 days ago
- 3 min read
Indonesia has taken a major step toward aligning its national carbon market with global standards through the signing of a Mutual Recognition Agreement (MRA) with Verra, one the world’s leading standards for climate action and sustainable development. The agreement, signed on October 3, 2025, formalizes collaboration between Indonesia’s Ministry of Environment/Environmental Protection Agency (MoE/EPA) and Verra to expand access to climate finance while strengthening the integrity and transparency of Indonesia’s carbon markets.
The MRA establishes mutual recognition between Verra-issued Verified Carbon Units (VCUs) and Indonesia’s Emission Reduction Certificates (SPEI). It enables projects registered under Verra’s Verified Carbon Standard (VCS) to also be recorded in Indonesia’s national carbon registry, SRN-PPI, linking domestic oversight with international credibility. While VCUs will continue to be issued and managed through the Verra Registry, key project and credit data will be mirrored in SRN-PPI so the government can track mitigation results and contributions to Indonesia’s Nationally Determined Contributions (NDCs) under the Paris Agreement.
Under the arrangement, project developers can pursue dual registration with Verra’s VCS and SRN-PPI in parallel. However, SRN-PPI registration must be completed before a project finalizes its VCS registration—ensuring domestic accountability while enabling global recognition. Public information will be shared automatically between registries, and credits issued under Verra will carry a label showing SRN approval. The system also opens opportunities for Article 6 participation, where VCUs may be authorized for international compliance use, while credits for voluntary markets can proceed with national approval.
This collaboration builds upon Indonesia’s previous MRAs with Gold Standard, Global Carbon Council (GCC), and Plan Vivo, signaling continued progress toward a comprehensive, high-integrity carbon-trading ecosystem. Environment Minister Hanif Faisol Nurofiq noted that Indonesia’s carbon-market frameworks are now in place, with ongoing efforts focused on improving implementation efficiency and ensuring revenues from carbon pricing directly support national mitigation and adaptation programs.
The agreement also reinforces Indonesia’s ambition to become a regional leader in high-integrity carbon crediting. Verra has already registered about 3 million tonnes of carbon credits from Indonesian forestry projects, with another 15 million tonnes expected. By harmonizing international standards with domestic governance, the MRA enhances confidence among corporate buyers, investors, and developers—unlocking financing for initiatives such as mangrove restoration and forest and peatland conservation.
To guide implementation, Verra and the MoE/EPA will jointly develop a Technical Guidance Document outlining detailed procedures, registry interoperability, and project-approval requirements. Its release will be an important next step in translating the MRA into action. The effectiveness of this partnership will depend on smooth data exchange, consistent oversight, and timely coordination between both registries.
As global demand for credible carbon credits accelerates, the Verra–Indonesia partnership stands as a milestone in bridging national sovereignty with international trust. By linking SRN-PPI and Verra’s VCS platform, Indonesia strengthens its position in the regional carbon economy and advances its contribution to global climate action.
At Mt. Stonegate, we welcome this milestone as a vital step toward a transparent and globally connected carbon market. With our expertise in carbon-asset management, renewable-energy solutions, and corporate decarbonization strategies, we are committed to supporting partners and stakeholders across Asia in navigating these evolving frameworks—helping them achieve credible, high-impact climate results aligned with both national and international goals.
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