Indonesia is preparing to sign a Mutual Recognition Agreement (MRA) on carbon trading with several countries, with Norway being the closest to finalization, said Minister of Environment Hanif Faisol Nurofiq.
The move builds on Indonesia’s existing MRA with Japan and is part of the country’s strategy to strengthen its position in the global carbon market.
Hanif expressed optimism that the agreement could be finalized within one to two weeks.
“The MRA with Norway is already very advanced in its discussions. We hope to see intensive progress in the coming days,” he said in Jakarta on Thursday, May 8, 2025.
In addition to Norway, Indonesia is eyeing similar partnerships with other countries, such as South Korea and Denmark. The Ministry of Environment is also working to align with international carbon standards by partnering with certification bodies, such as Gold Standard, VERRA, and Plan Vivo.
Hanif cited that carbon trading forms one of the key mechanisms in the implementation of Indonesia’s Carbon Economic Value (NEK), aimed at reducing greenhouse gas (GHG) emissions in line with the country’s Enhanced Nationally Determined Contribution (NDC) under the Paris Agreement.
Indonesia’s carbon credits extend beyond the energy sector, leveraging its vast natural ecosystems, including tropical forests, peatlands, and mangroves, which serve as vital carbon sinks.
The MRA model was first adopted by Indonesia in a bilateral agreement with Japan, announced during the 29th UN Climate Change Conference (COP29) held in Azerbaijan last year. The agreement follows Article 6.2 of the Paris Agreement, allowing countries to cooperate through internationally transferred mitigation outcomes (ITMOs) while ensuring mutual recognition of carbon credit systems.
