But the MRA could potentially unlock supplies from long-paused Reducing Emissions from Deforestation and Forest Degradation (REDD+) projects, sources told Fastmarkets.
The deal signed by Verra and Indonesia’s Ministry of Environment/Environment Control Agency on Friday October 3 allows projects registered under Verra’s Verified Carbon Standard (VCS) Program to register concurrently in Indonesia’s national registry system, SRN-PPI.
The agreement comes as Indonesia’s largest REDD+ projects remain constrained by a government moratorium on new project registrations and credit issuances, first imposed in August 2022. The freeze halted issuance from major forest carbon projects, including the Katingan Mentaya Peatland Restoration & Conservation Project (VCS 1477) and the Rimba Raya Biodiversity Reserve (VCS 674). This has artificially constrained supplies from the projects, with market participants pointing to this as one of the reasons for steady gains in Katingan this year.
Katingan 2020 vintage credits continue to attract strong demand in the voluntary carbon market, with offers reported at $9.70 per tCO2e and bids at $9.00 per tCO2e this week. Prices have softened slightly from peaks above $10 per tCO2e in September but remain well above early-2025 levels of $4.50-5.00 per tCO2e.
Sources had earlier told Fastmarkets that forward vintages from 2021-2022 were quoted at $8.50-9.00 per tCO2e, with delivery expected in the fourth quarter of 2025 or the first quarter of 2026.
And a source in London said offers were being pushed higher again, above $10 per tCO2e for vintage 2020, following the announcement of the deal.
Forward offers for newer, yet-to-be-issued 2021-2022 vintages have been repeatedly reported to Fastmarkets below spot levels for vintage 2020 credits in recent months. With some market participants previously suggesting that the increased supply of new issuances could potentially cap recent price gains. Vintage 2020 is the latest vintage of credits Katingan has issued, while Rimba Raya had issued up to vintage 2019.
ClearBlue Market’s senior associate, Abhishek Das, said the MRA was a major development for the regional carbon market.
“By aligning Indonesian credits with Verra’s internationally recognized standards, it effectively increases their credibility and market access,” Das said.
“This could attract more demand from international buyers and potentially support a price premium for high-quality Indonesian credits,” he added.
Das said that Katingan 2020 credits were particularly sought-after due to their positive market reputation, supply constraints and an upgraded project rating earlier this year.
Verra chief executive officer Mandy Rambharos said the deal meant that Indonesia was poised to lead Southeast Asia in generating high-integrity carbon credits.
“This agreement marks an important shift toward collaboration and mutual recognition in the interest of global climate action that benefits the planet and people,” she said.
MRA a milestone in aligning global and national climate efforts
Indonesia’s deputy minister of climate change and carbon governance, Ary Sudijanto, said the MRA was a milestone in terms of harmonizing global and national climate efforts.
“Through this collaboration, we aim to enhance the integrity of our carbon markets, contribute to sustainable development goals and accelerate our path toward meeting national and international climate targets,” Sudijanto said.
Under the MRA, eligible projects can pursue registration with both the VCS Program and SRN-PPI. All VCS-approved methodologies are covered, including REDD+, improved forest management, and other nature-based and technology-driven projects.
Registration with SRN-PPI must be completed before a project can finalize registration with VCS and documentation submitted to Verra will satisfy national requirements, creating a streamlined dual-track process.
VCUs issued by Verra will carry a label signaling that a project is also registered in Indonesia, providing buyers with greater confidence in government oversight.
The agreement also outlines registry interoperability and information sharing, Fastmarkets understands, with Verra sharing public project and credit information directly with SRN-PPI, enabling the government to track project progress and verify emissions reductions.
Both parties will work to establish automated data exchanges between their registries, a move that market participants said could reduce administrative delays. verified carbon units (VCUs) issued under the VCS Program may also be authorized for use under Article 6 of the Paris Agreement, while voluntary market VCUs may still require MoE/EPA approval.
The parties plan to issue a comprehensive technical guidance document to outline MRA requirements for project proponents and developers. While the guidance is still in development, stakeholders are encouraged to monitor updates as the framework for dual registration is finalized.
The MRA follows a similar agreement between Indonesia and Gold Standard in May, which allowed projects to register under SRN-PPI and seek approval for international transfer. However, the Gold Standard deal does not cover REDD+ methodologies.
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