Indonesia’s Initiative in Forestry-Based Carbon Offset Trading: A Step Towards Sustainable Development

Photo Credits: Global Decarbonization Solutions – https://www.gdscarbon.com/

[Charlottesville, Virginia, USA; 10 April 2025]

Indonesia is taking decisive action toward unlocking the climate potential of its vast natural ecosystems through a new national carbon offset trading scheme focused on forestry. As reported by Reuters and other outlets, the government plans to permit the sale of forest-based carbon credits to international buyers as early as this year. This follows the launch of Indonesia’s domestic carbon exchange in 2023 and a recent policy shift allowing international credit trading from energy projects.

At Climate Investment Partners, we are proud to actively contribute to this transformation through our initiative in Indonesia: the Pesisir Biru Nusantara: An Indonesian Mangrove Restoration Project, developed in partnership with Global Decarbonization Solutions (GDS).

Pesisir Biru Nusantara: Scaling Climate Action and Coastal Protection

Spanning over 30,000 hectares of degraded mangrove ecosystems across Indonesia’s coastlines and river deltas, Pesisir Biru Nusantara is one of the country’s most ambitious nature-based climate projects. It harnesses the power of afforestation, reforestation, and revegetation to restore natural carbon sinks, generate verified carbon credits, and create inclusive economic opportunities for coastal communities.

Project at a glance:

    • 30,000+ hectares to be restored
    • 300,000+ verified carbon credits expected annually
    • 30+ million mangrove trees to be planted
  • 2,000+ community members to directly benefit

Beyond carbon sequestration, the project conserves biodiversity, protects coastlines from erosion and storms, and supports Indonesia’s climate commitments, addressing both national priorities and global mitigation needs.

Unlocking Carbon Market Potential

Indonesia’s latest policy moves signal its intent to align domestic frameworks with internationally recognized standards (such as Verra, Gold Standard, and Plan Vivo) by May 2025. This harmonization is crucial for ensuring projects like Pesisir Biru Nusantara can meet growing global demand for high-quality, nature-based credits.

Developed in collaboration with GDS, a trusted local partner, the project emphasizes strong community engagement and compliance with national policies. It also advances key Sustainable Development Goals (SDGs), including:

A Model for Community-Driven Climate Solutions

Beyond its environmental impact, the project creates tangible social value:

  • Employment in nursery operations, site maintenance, and restoration work
  • Small-scale agroforestry and silvofishery (e.g., sustainable crab fishing) to enhance food security and income
  • Active support for gender equity and inclusion in employment practices

Mangroves also serve as breeding grounds for marine biodiversity and critical habitat for endangered species like the proboscis monkey (Nasalis larvatus) and the long-tailed grey macaque (Macaca fascicularis), reinforcing the project’s strong co-benefits.

Why It Matters

Indonesia is a vital player in the global fight against climate change, holding one of the world’s largest carbon sink potentials as S&P Global and the Financial Times highlight, global interest in Indonesian carbon credits is surging. President-elect Prabowo has even announced plans to create a $65 billion green fund sourced from carbon credit revenues (Reuters).

As the carbon market matures, it is projects like Pesisir Biru Nusantara—community-led, biodiversity-rich, and aligned with high standards—that will define the future of credible and high-impact offsets.

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