Pertamina NRE accelerates nine forestry carbon projects after KLH-Gold Standard agreement

Pertamina New and Renewable Energy plans to accelerate development of nine forestry and nature based carbon projects following the signing of a mutual recognition agreement between Indonesia’s Environment Ministry (KLH) and the Gold Standard Foundation, according to remarks reported by Ecobiz.asia.

Ecobiz.asia reported that Pertamina NRE Chief Executive Officer John Anis said the company has identified nine project locations, with five located in North Kalimantan and four in East Kalimantan.

The projects are being developed in cooperation with Perhutani, Inhutani, and the Nusantara Capital Authority.

John said feasibility studies for three locations in North Kalimantan and one location in East Kalimantan have been completed.

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He added that the agreement between the Environment Ministry and Gold Standard could help Indonesian carbon projects gain wider access to international carbon markets seeking verified high quality emission reduction credits.

According to Ecobiz.asia, John said access to export and compliance carbon markets would improve the economic viability of nature based carbon projects, which remain difficult to sustain if relying solely on domestic voluntary carbon prices.

He also said carbon market financing could support long term conservation funding while generating economic benefits for communities, government, and emission reduction programs.

The mutual recognition agreement is expected to support international recognition of Indonesian carbon credits and strengthen the country’s position in global carbon trading markets, Ecobiz.asia reported.

Editing Alexander Ginting