Indonesia to Launch Emissions Offset Only Trading and Recognize International Standard Carbon Units Within the Forestry Sector

Following the enforcement of Regulation of the President No. 110 of 2025 on the Organization of Carbon Economic Value (Nilai Ekonomi Karbon – “NEK”) Instruments and National Greenhouse Gas (“GHG”) Emissions Controls (“Regulation 110/2025”),[1] the Minister of Forestry (“Minister”) is currently working on a new Draft Regulation (“Draft Regulation”) which, if it ultimately comes into force, will establish a new set of carbon trading procedures that involve GHG emissions offsetting within the forestry sector.[2]