Indonesia’s carbon market off to sluggish start

Incoming government faces decarbonisation challenges as lack of robust standards constrain industry uptake of new voluntary carbon market

Governments across Southeast Asia are finally starting to wake up to the potential of carbon markets to help meet net-zero targets and reverse rampant deforestation. The region is home to almost 15% of the world’s tropical forests and boasts some of the most globally important biodiversity hotspots on the planet. The archipelago nation of Indonesia is among the most densely forested countries in Southeast Asia, notwithstanding the alarming rate of clear-cutting and logging posted in recent decades, and the latest to launch an official carbon market. In September, the government announced its first carbon trading programme as part of its strategy to achieve net-zero emissions by 2060. Indones