Indonesia and Gold Standard Foundation Forge Partnership to Boost Competitiveness in the Carbon Market
Jakarta, May 8, 2025 — The Ministry of Environment and Forestry/Environmental Management Agency signed a Mutual Recognition Agreement with the Gold Standard Foundation. The agency joins local work with a respected global group. Indonesia’s carbon market now shows a clearer, more trusted path forward. The move helps Indonesia meet its climate goals under the Paris rules.
Bridging Local and Global Carbon Standards
Indonesia’s greenhouse gas reduction system, SPEI, now works with the Gold Standard for Global Goals. SPEI matches a strict international system that sets high standards of proof and trust. This step makes it simpler for Indonesian carbon projects, both at home and abroad, to show they meet strong rules. Local projects gain a closer tie to world buyers by showing clear quality and care with every check.
Supporting Indonesia’s Nationally Determined Contribution
Minister Hanif Faisol Nurofiq said the deal backs Indonesia’s promise to cut greenhouse gases. He explained,
"The signing of this agreement shows our drive to reduce emissions and meet our climate goals under the Paris rules. By matching SPEI with the world-recognized Gold Standard, we open more paths for our projects in the international carbon trade. This step also helps pull in funds that support sustainable work."
Focus on Broad Impact and Community Support
Margaret Kim, CEO of the Gold Standard Foundation, said the plan makes climate work fair for all. She added,
"The deal shows our strong care for real climate action. It drives projects that cut emissions and help local people. Working with Indonesia builds a stronger bond in the carbon market, ensuring that steps for climate care also help communities and economies."
Understanding the Carbon Market Mechanism
Carbon markets work by trading carbon credits. A credit shows that a company cut emissions beyond the set target. Companies that lower emissions past their limits earn these credits. Buyers use them to balance extra gases. This market system gives a costwise way to cut emissions while it helps nations meet their eco aims in clear, measurable steps.
Strategic Benefits of the Partnership
• Better Market Entry: Indonesian projects now reach more global platforms.
• Stronger Trust: Clear checks and simple rules build greater trust in local carbon credits.
• Global Recognition: The deal brings an international nod to Indonesia’s eco efforts.
• Increased Investment: A system that shows clear proof and fairness draws more green finance.
Both groups will work side-by-side, share updates often, and keep a close check on how well the agreement works.
Looking Ahead: Toward a Sustainable and Clear Carbon Market
The deal speeds up climate funding in Indonesia. It builds a more open system for carbon trade and helps merge local efforts with global practices. By matching a local system with a world standard, both parties set a strong example that ties economic aims with nature care.
About the Parties
• Kementerian Lingkungan Hidup/Badan Pengendalian Lingkungan Hidup (KLH/BPLH) is Indonesia’s main agency for environmental care and sustainable growth.
• Gold Standard Foundation is a Geneva-based nonprofit that sets strict global rules to check and prove cuts in greenhouse gases. Its work aims to help local people while cutting emissions.
For further information, please contact:
Sasmita Nugroho
Head of Public Relations, KLH/BPLH
Phone: +62 818-0819-5929
Email: [email protected]
Website: kemenlh.go.id
Social Media: Instagram (@kemenlh_bplh), YouTube (KLH-BPLH), TikTok (Kemenlh_BPLH), X/Twitter (@KemenLH_BPLH)
This new deal ties local work directly to global checks. Its short links and clear ties make it easier to trust each step. The agreement sets a clear path for world action that meshes money steps with nature care.
