Global Carbon Council, Indonesian Environment Ministry Sign Mutual Recognition Agreement

Doha, September 23 (QNA) - The Global Carbon Council (GCC), an international carbon credit and sustainable development program based in the Global South, has signed a Mutual Recognition Agreement (MRA) with the Indonesian Ministry of Environment, represented by the Environmental Protection Agency (MoE/EPA).

The agreement is aimed at promoting sustainable development by creating a streamlined pathway for Indonesian projects to access international voluntary carbon markets, while ensuring the country's national climate goals in line with the Paris Agreement.

The MRA was signed by Founding Chairman of the Global Carbon Council (GCC), Dr. Yousef Mohamed Alhorr, and Deputy Minister for Climate Change and Carbon Pricing Governance, Ministry of Environment/Environmental Protection Agency, Republic of Indonesia, Ary Sudijanto.

The agreement establishes the mutual recognition of Indonesia's Greenhouse Gases Emission Reduction Certification (SPEI) and the GCC Program to provide a framework for project registration in Indonesia, ensuring consistency in methodologies, and enhancing transparency and credibility in carbon markets. Under the MRA, Indonesian project developers may use GCC, CDM, or Article 6.4 methodologies, subject to approval by MoE/EPA. All projects registered under GCC will also be recorded in Indonesia's National Registry System for Climate Change (SRN-PPI), with data on project registration and carbon credit issuance.

This agreement supports Indonesia's Enhanced NDC target of reducing emissions by 31.89 percent domestically and 43.20 percent with international support by 2030, and its commitment to achieve Net Zero by 2060 or earlier. It also builds on the launch of Indonesia's Carbon Exchange (IDX Carbon) in 2023 and its expansion to international trading in 2025, positioning Indonesia as a leader in high-integrity carbon markets.  

Dr. Yousef Mohamed Alhorr, Founding Chairman of the Global Carbon Council, stated: "Signing this Mutual Recognition Agreement paves the way for high-integrity carbon markets and sustainable development in Indonesia. By aligning with the global best practices of voluntary carbon markets and Article 6.2 of the Paris Agreement, this collaboration ensures credible project registration and the issuance of Approved Carbon Credits. The MRA integrates GCC with Indonesia's national registry, prevents double counting, and supports a transparent UNFCCC-aligned framework. GCC has already begun working with the six projects submitted from Indonesia, opening new opportunities for climate action and carbon finance."

Projects certified under GCC will receive Approved Carbon Credits (ACCs) through the GCC Registry, which can be transferred to Indonesia's SPE registry under agreed procedures. ACCs may be used in both domestic and international carbon markets, subject to ministerial approval. The MRA takes effect immediately and will remain valid until 2030, with annual reviews and the possibility of extension by mutual consent.

Source: QNA