Indonesia, Japan strengthen carbon credit trading through MRA

Belém, Brazil (ANTARA) – Indonesia and Japan are stepping up collaboration on carbon credit trading under a bilateral agreement aligned with the Paris Agreement, Indonesian Environment Minister Hanif Faisol Nurofiq said Friday.Nurofiq met with Japanese Vice Minister for Global Environmental Affairs Kentaro Doi at the 30th UN Climate Change Conference (COP30) to advance the Mutual Recognition Arrangement (MRA), which allows both countries to recognize each other’s carbon credit systems.“We agreed to continue MRA in operational efforts under Article 6.2, targeting greenhouse gas emission reductions,” Nurofiq said.The discussion also covered broader cooperation, including climate change mitigation initiatives and building systems to implement climate action.“We are initiating joint efforts, including system development and implementing climate change management measures,” he added.The MRA, first signed at COP29 in 2024, facilitates carbon trading under Article 6.2 of the Paris Agreement and supports both countries in achieving their Nationally Determined Contribution goals. It recognizes Indonesia’s GHG Emission Reduction Certification system (SPEI) and Japan’s Joint Crediting Mechanism (JCM) as equivalent frameworks.This step underscores Indonesia’s commitment to global climate action while promoting practical carbon trading cooperation with Japan. Officials say the agreement helps ensure the integrity of carbon credits while maintaining national oversight.“The implementation of the SPEI-JCM MRA is a crucial step in operationalizing carbon trading under Article 6,” Nurofiq said in September, noting Indonesia’s focus on producing high-quality carbon credits recognized internationally.Experts say bilateral arrangements like this are vital for scaling up emissions reductions and supporting transparent carbon markets. Both countries are expected to continue joint monitoring and reporting to ensure the MRA’s effectiveness.The partnership reflects Indonesia’s broader strategy to enhance climate action through international cooperation and market-based mechanisms while safeguarding sovereignty and economic interests.