MRA Signing for Carbon Credit Recognition Between Indonesia, Plan Vivo and GCC

A significant step in Indonesia's climate leadership was marked on September 16, 2025, as the Ministry of Environment and Forestry (KLH) officially signed Mutual Recognition Agreements (MRAs) with two prominent voluntary carbon standards: the Global Carbon Council (GCC) and the Plan Vivo Foundation. This landmark event completes a series of strategic agreements, positioning Indonesia as a key player in the global carbon market.

The agreement was signed by Ary Sudijanto, Deputy for Climate Change Control and Governance of Carbon Economic Value at KLH; Keith Bohannon, CEO of Plan Vivo; and Yousef Alhorr, Founding Chairman of Global Carbon Council. The ceremony was witnessed by Hanif Faisol Nurofiq, Minister of Environment and Forestry, and Bambang Patijaya, Chair of Commission XII of the Indonesian House of Representatives (DPR RI).

This recent signing follows a crucial MRA with the Gold Standard Foundation, which was officially signed on May 8, 2025. These agreements establish a mutual recognition framework for methodologies, measurement standards, and emission reduction certificates. This means that carbon credits certified under the Gold Standard, GCC, or Plan Vivo will be considered equivalent to Indonesia's national certificate, the Sertifikasi Pengurangan Emisi Gas Rumah Kaca Indonesia (SPEI). This streamlined process aims to reduce administrative hurdles and increase the flow of climate finance into the country. All transactions are mandated to be recorded in the national registry, the Sistem Registri Nasional (SRN) PPI, ensuring data sovereignty and transparency. Plan Vivo will contribute particularly to the field of community-based and social forestry projects, empowering smallholders and local communities, while GCC strengthens international credibility through its robust voluntary market framework.

Future Progress and Carbon Projects Potential 

Looking forward, Indonesia has a clear roadmap for the immediate future. In the coming weeks, the government is set to announce the official rules and guidelines for implementing the MRA with Gold Standard. Simultaneously, officials are working to finalize preparations for a signing with Verra, with the goal of reaching an agreement within the next month. These efforts are part of a continuous process of expanding cooperation with global standards. The Ministry of Environment is also actively negotiating with other key players, including the Independent Integrity Council for the Voluntary Carbon Market (ICVCM), which has shown its agreement to collaborate and may also have a future agreement with Indonesia.

Beyond the MRA with these international standards, Indonesia is also actively developing bilateral agreements under Article 6 of the Paris Agreement. The government has a Joint Crediting Mechanism (JCM) with Japan, which is estimated to generate 3,826,719 tCO2e from the implementation of task force acceleration of 60 JCM projects. A bilateral agreement with Norway is also underway, with a potential of up to 12,000,000 tCO₂e between 2026-2035.

Source: Ministry of Environment of the Republic of Indonesia

In addition to bilateral agreements, Indonesia is leveraging multiple schemes to unlock further carbon credit potential. The transition of Clean Development Mechanism (CDM) projects into the Article 6.4 UNFCCC framework is expected to yield around 4.8 million tCO₂e annually. Under the MRA with Gold Standard, six energy-sector projects have already been identified, with a projected issuance of nearly 800,000 tCO₂e. From the domestic side, the national registry system has issued 6.1 million tCO₂e through nine projects, with another seven projects in the pipeline that could contribute a staggering 1.9 billion tCO₂e in the future. At the same time, Indonesia’s IDX Carbon Exchange has facilitated trading from five energy projects, amounting to 1.6 million tCO₂e, showcasing the momentum of the domestic market.

Source: Ministry of Environment of the Republic of Indonesia

Taken together, these initiatives highlight Indonesia’s multi-scheme approach to developing its carbon market. By combining bilateral agreements, registry-based supply, voluntary market MRAs, and a functioning exchange platform, Indonesia is positioning itself not only to meet national climate targets but also to become a major global supplier of high-quality carbon credits. This diversity of mechanisms underscores the country’s strategy of building a carbon ecosystem that is both credible and scalable, ensuring alignment with international standards while unlocking vast opportunities for sustainable investment.

If you’re interested in Indonesia’s leadership in carbon markets and the opportunities it brings, Mt. Stonegate can help you navigate the complexity and unlock sustainable value. Learn more about how we can partner on your sustainability journey by visiting www.mtstonegate.com!