New carbon credit issuance supports sustainability: ministry

Jakarta (ANTARA) - Indonesia will soon issue its first forestry carbon credits under a new national market framework, marking a milestone in its climate strategy while supporting sustainable development and community benefits, the Forestry Ministry said on Saturday.

The framework allows major forestry projects to be registered and verified under updated carbon market rules using the internationally recognized Verra standard.

"This milestone supports Indonesia's Nationally Determined Contribution while ensuring climate finance benefits communities and helps preserve forests and peatlands for future generations," Sustainable Forest Management Director General Laksmi Wijayanti said.

Verra is preparing to issue credits for three Indonesian projects that have met regulatory requirements: the Sumatera Merang Peatland Project, the Katingan Peatland Restoration and Conservation Project, and the Mayas Project.

The three projects are expected to generate emission reductions and removals totaling 31,659,185 metric tons of carbon dioxide equivalent during their respective verification periods.

The ministry requires all domestic nature-based carbon projects to be registered and approved before internationally recognized credits can be issued.

Indonesia will record all issued credits through its Carbon Unit Registry System (SRUK) to support national carbon accounting and reporting.

The ministry and Verra are developing a digital link to synchronize their carbon registries.

Using an application programming interface, the Verra Registry will be connected with SRUK and the Indonesia Carbon Exchange, known as IDXCarbon.

The integrated system will use blockchain technology to provide end-to-end traceability of carbon credits from issuance to trading.

Laksmi said the cooperation reflects Indonesia's commitment to maximizing its extensive nature-based carbon resources.

She said the ministry and Verra would accelerate certification of additional nature-based carbon projects to further develop Indonesia's carbon market.

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Translator: Arnidhya Nur Zhafira, Yashinta Difa

Editor: Rahmad Nasution

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