Gold Standard Agreement Signals New Chapter for Indonesia's Carbon Market
- Jul 8
- 3 min read
Updated: Jul 9
On May 8, 2025, Indonesia’s Ministry of Environment and Forestry signed a Mutual Recognition Agreement (MRA) with the Gold Standard Foundation, signaling a new chapter in the development of Indonesia’s carbon market. It represents a critical step in enhancing the credibility and global recognition of carbon credits from Indonesia.
Key Features of the Agreement
The MRA introduces two major developments:
Eligibility for Gold Standard Certification
Carbon projects in Indonesia can now pursue certification under the Gold Standard, subject to prior approval by the Indonesian government. This recognition gives developers the opportunity to tap into international markets and elevate the value of their credits.
Alignment of MRV Methodologies
The agreement facilitates better alignment between Gold Standard’s monitoring, reporting, and verification (MRV) methodologies and Indonesia’s national framework. This aims to streamline validation procedures and reduce duplicative efforts for developers.
Depending on their intended use, credits issued under Gold Standard certification may also receive a Sertifikat Pengurangan Emisi Indonesia (SPEI) label, provided they meet the requirements of Indonesia’s registry. This dual recognition increases transparency and can enhance market confidence, particularly among international buyers. For voluntary market purposes, conversion to SPEI is optional; however, it is required if the project is intended for use in Indonesia’s compliance market.
Projects already registered in SRN-PPI do not need to re-register but must still be submitted for formal recognition under the MRA framework.
Why this Agreement Matters?
The MRA strengthens Indonesia’s commitment to a credible and internationally integrated carbon ecosystem. It introduces a pathway for dual recognition, where carbon credits can be validated under both a national registry and an internationally recognized certification body. This alignment enhances the visibility, traceability, and quality assurance of Indonesian carbon credits in global markets.
Importantly, the agreement also ensures that all Gold Standard-certified projects remain under the regulatory supervision of the Indonesian government. Compliance with national laws and safeguards will continue to be required, ensuring that environmental and social integrity remain central to project implementation.
The agreement also brings Indonesian credits one step closer to being treated as equivalents to those issued under other internationally recognized systems, such as Japan’s. This growing trust in Indonesia’s carbon infrastructure is a sign of market maturity and increased cross-border compatibility.
A Boost for Nature-Based Projects
Indonesia’s vast tropical ecosystems—including forests, peatlands, and mangroves—offer some of the most significant carbon sequestration potential in the world. The MRA helps unlock this potential by making it easier for project developers to secure international certification without compromising national requirements.
With these streamlined pathways, developers of nature-based solutions now have a stronger incentive to scale high-quality projects that meet both domestic and international expectations for integrity.
A joint task force between the Ministry of Environment, Ministry of Forestry, and Gold Standard Foundation are in place to finalize a practical roadmap for implementation. More detailed technical guidance is expected to be released in the coming months.
What’s Next?
As the agreement moves from policy to implementation, several critical developments will shape how effectively it delivers on its promise. Key areas to watch include:
Clear implementation guidance is needed to operationalize the agreement. Project developers will be looking for step-by-step procedures, documentation requirements, and estimated timelines.
System integration between SRN-PPI and the Gold Standard registry will be essential to avoid manual duplication and improve user experience. A digital interface could streamline dual certification workflows.
Further Mutual Recognition Agreements (MRAs) are likely on the horizon, including with standards such as Verra and Plan Vivo, and countries like Norway, Japan, and South Korea.
Private sector engagement is expected to grow as confidence in the Indonesian carbon market increases. Companies pursuing high-integrity credits will pay close attention to how this agreement translates into practical outcomes.
Conclusion
The MRA between Indonesia and Gold Standard marks a significant step in aligning national carbon governance with international standards. It opens up new opportunities for high-integrity project development, simplifies the certification pathway, and enhances the global reputation of Indonesian carbon credits.
At Mt. Stonegate, we are proud to support these efforts. With our expertise in carbon markets, renewable energy, and tailored decarbonization strategies, we are committed to empowering stakeholders in Indonesia and across the region to achieve their sustainability goals and drive impactful climate action.
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