S'abonner

Indonesia and Japan: First Bilateral Mutual Recognition Agreement for Carbon Trading

Indonesia and Japan establish a historic collaboration for carbon credit trading under the Paris Agreement, enhancing transparency and international environmental standards.

Share:

Indonesia and Japan have signed a Mutual Recognition Arrangement (MRA) for bilateral carbon trading. This agreement, effective since October 28, was announced during the United Nations Climate Change Conference (COP29) in Azerbaijan, according to a statement from Indonesia’s Ministry of Environment on November 12.

This MRA is the first global model of bilateral collaboration under the framework of Article 6.2 of the Paris Agreement. It aims to align the national carbon credit systems of both countries, including methodologies for calculating emission reductions, monitoring systems, and carbon credit certification. In Indonesia, this process is referred to as Sertifikasi Pengurangan Emisi GRK Indonesia (Greenhouse Gas Emission Reduction Certification).

A framework established since 2021
Carbon trading implementation in Indonesia is based on Presidential Regulation Number 98 of 2021. This regulation introduces the concept of “carbon economic value” and oversees initiatives such as carbon trading to achieve Nationally Determined Contributions (NDCs). Under the MRA, Indonesian carbon credits will be recognized as equivalent to Japan’s, provided they adhere to Indonesian environmental standards.

Transparency and integrity
The agreement emphasizes principles of transparency and consistency in carbon credit transactions. The distribution of generated credits will be determined by mutual agreement between the two governments, who will jointly oversee project implementation.

A strengthened collaboration
Since 2013, Indonesia has collaborated with Japan through the Joint Crediting Mechanism (JCM). However, until now, these projects were not fully registered in Indonesia’s National Registry System. With the MRA’s implementation, all JCM projects must now be completely registered and comply with Indonesia’s greenhouse gas emission reduction certification system.

Inventory of JCM projects
To ensure a smooth transition, Indonesia’s Ministry of Environment, along with the JCM Secretariat, plans to conduct an inventory of existing projects by the end of 2024. This initiative will include analyzing previously generated credits, ongoing projects, and Japan’s future investment plans in Indonesia’s emission reduction projects.

  • Populaires ​
Asia-Pacific LNG physical market jumps 86% year over year despite geopolitical tensions
AMEA Power commissions Egypt’s first large-scale battery energy storage system
Marseille court approves Bourbon’s accelerated financial restructuring
Sol Systems raises $675mn to support 500 MW of solar and storage projects in the United States
Envision Energy and FERA Australia launch major hybrid wind and storage project
TotalEnergies invests in sustainable forestry management with NativState in the United States
TotalEnergies seals partnership with NativState to develop thirteen forestry management projects across 100,000 hectares, providing an economic alternative to intensive timber harvesting for hundreds of private landowners.
Drax strengthens its lead as the UK’s top carbon emitter in 2024
Drax’s generation site recorded a 16% rise in its emissions, consolidating its position as the UK’s main emitter, according to analysis published by think tank Ember.
Graphano Energy unveils an initial resource estimate for the Lac Saguay graphite deposit
Graphano Energy announces an initial mineral resource estimate for its Lac Saguay graphite properties in Québec, highlighting immediate development potential near major transport routes, supported by independent analyses.
Carbon2Nature and Uría Menéndez launch reforestation of 90 hectares in Salamanca
Carbon2Nature, a subsidiary of Iberdrola, partners with law firm Uría Menéndez on a 90-hectare reforestation project in Sierra de Francia, targeting carbon footprint compensation for the legal sector.
First commercial seaweed harvest completed in Dutch offshore wind farm
North Sea Farmers has carried out the very first commercial-scale seaweed harvest in an offshore wind farm, supported by funding from the Amazon Right Now climate fund.
NWF injects GBP 28.6 million into Peak Cluster project for CO₂ capture
The UK's National Wealth Fund participates in a GBP 59.6 million funding round to finance a CO₂ capture pipeline for the cement and lime industry, targeting a final investment decision by 2028.
Bayou Bend accelerates carbon storage on the US Gulf Coast
The Bayou Bend project, led by Chevron, Equinor, and TotalEnergies, aims to become a major hub for industrial carbon dioxide storage on the US Gulf Coast, with initial phases already completed.
Chloris Geospatial raises $8.5M to scale satellite-based forest carbon monitoring
US-based Chloris Geospatial has raised $8.5M from international investors to expand its satellite-based forest monitoring capabilities and strengthen its commercial position in Europe, addressing growing demand in the carbon market.
Ottawa injects CAD21.5mn ($15.8mn) into new carbon capture projects
The federal government is funding three carbon capture, utilisation and storage initiatives in Alberta, strengthening national energy competitiveness and preparing infrastructure aligned with long-term emission-reduction goals.
Donald Trump significantly increases US tax credits for carbon capture
Donald Trump approves a substantial increase in US tax credits aimed at carbon capture and utilization in oil projects, significantly reshaping economic outlooks for the energy sector and drawing attention from specialized investors.
EU Unlocks €2.1 Billion to Protect its Exporters from Carbon Costs
The European Union unveils a plan aimed at protecting its exporting industries from rising carbon policy costs, using revenue generated from its border adjustment mechanism.
Colombian Carbon Market Under Pressure: Excess Credits and Waning Confidence
Colombia is experiencing a significant drop in voluntary carbon credit prices due to a major oversupply, destabilizing the financial balance of associated communities and projects.
France and Norway formalize an agreement on cross-border CO₂ transport
France and Norway sign an agreement facilitating the international transport of CO₂ to offshore geological storage facilities, notably through the Northern Lights project and the CO₂ Highway Europe infrastructure.
Frontier signs offtake agreement for 120 000 tonnes of BECCS credits
Frontier Infrastructure Holdings has signed an offtake agreement with manager Wild Assets for up to 120 000 tonnes of BECCS credits, underscoring the voluntary market’s growing appetite for traceable, high-permanence carbon removals.
Wood Mackenzie forecasts $1.35 trillion for CCUS and carbon credits markets
Global carbon capture and offset credit markets could exceed $1.35 trillion by 2050, driven by private investment, technological advances, and regulatory developments, according to analysis published by Wood Mackenzie.
Australian Carbon Credit Market: New Players Influence Price Dynamics
The Australian carbon credit market is experiencing temporary price stabilization, while the emergence of new alternative financial instruments gradually attracts corporate attention, subtly altering the commercial and financial dynamics of the sector.
Norway Launches Complete Industrial Chain for Carbon Capture and Storage
Norway has launched a major industrial project aimed at capturing, maritime transport, and geological storage of CO₂, mobilizing key energy players and significant public subsidies to ensure economic viability.
The EU grants €21mn to accelerate industrial decarbonisation in Egypt
A €21mn European grant, managed by EIB Global, will fund Egyptian projects aimed at cutting industrial emissions and boosting recycling, while a related €135mn loan is expected to raise additional climate investments.
Sweden and Norway Launch CCS Infrastructure Targeting 5 Mt Annual CO₂ Capture
Stockholm Exergi begins construction of a CO₂ capture facility in Stockholm, integrated with the expansion of Northern Lights in Norway, reaching a total storage capacity of 5 million tonnes per year by 2028.
Global carbon coverage reaches 28%, compliance demand triples
Global emissions coverage by carbon pricing systems reaches 28%, driven by expanding compliance markets, where demand nearly tripled within one year, according to a World Bank report.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING