New Regulation On Carbon Trading For The Forestry Sector

The Indonesian Ministry of Environment and Forestry ("MOEF") is continuing to develop the regulatory framework for carbon trading in Indonesia. First it issued an umbrella regulation, Presidential Regulation No. 98 of 2021 on Carbon Economic Value (the "CEV Regulation"), which was followed by MOEF Regulation No. 21 of 2022 ("MOEF Regulation 21/2022").

Now the MOEF has issued MOEF Regulation No. 7 of 2023 regarding Procedures for Carbon Trading in the Forestry Sector (dated June 15, 2023) ("MOEF Regulation 7/2023").

As with the preceding regulations, where carbon trading consists of emissions offset and emissions trading, MOEF Regulation 7/2023 focuses on regulating carbon trading transactions and activities arising from climate change mitigation activities in the forestry sector. This includes reduction of greenhouse gas (GHG) emissions through, among other measures, reduction of deforestation rate in forest and peatland areas, peatland restoration,