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Indonesia’s leadership in the blue carbon economy

Indonesia’s leadership in the blue carbon economy

Key messages

  • Following approval of Articles 6.2 and 6.4 of the Paris Agreement at COP30, Indonesia is ready to implement Article 6 through several bilateral projects. Along the same line, complementing the Mutual Recognition Agreements (MRAs) with independent crediting schemes will build confidence to develop blue carbon projects.
  • Indonesia’s leadership in carbon governance, such as the Indonesian Carbon Exchange (IDXCarbon), has been recognized internationally as the best in an emerging economy. However, overlapping jurisdictional authority for blue carbon ecosystems remains a fundamental institutional barrier. Transparency and a participatory regulatory drafting process would enhance early public inputs and reduce risks.
  • Indonesia’s carbon market faces an urgent supply–demand imbalance, with limited domestic demand suppressing prices despite blue carbon’s premium positioning globally. Without stronger demand-side policy instruments, investment signals for blue carbon project development will remain weak.
  • Engaging coastal communities will boost restoration and conservation of blue carbon ecosystems, especially in mangrove ecosystems as standards and methodologies are readily available. The efforts will go beyond carbon as a number of ecosystem services may be captured in the broader context of the blue economy.


This work is licensed under CC-BY 4.0
DOI:
https://doi.org/10.17528/cifor-icraf/009449
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TI  - Indonesia’s leadership in the blue carbon economy 
AU  - Murdiyarso, D. 
AU  - Rahayu, K.D. 
AU  - Ardhani, T.S.P. 
AU  - Royna, M. 
AB  - Key messages

Following approval of Articles 6.2 and 6.4 of the Paris Agreement at COP30, Indonesia is ready to implement Article 6 through several bilateral projects. Along the same line, complementing the Mutual Recognition Agreements (MRAs) with independent crediting schemes will build confidence to develop blue carbon projects.
Indonesia’s leadership in carbon governance, such as the Indonesian Carbon Exchange (IDXCarbon), has been recognized internationally as the best in an emerging economy. However, overlapping jurisdictional authority for blue carbon ecosystems remains a fundamental institutional barrier. Transparency and a participatory regulatory drafting process would enhance early public inputs and reduce risks.
Indonesia’s carbon market faces an urgent supply–demand imbalance, with limited domestic demand suppressing prices despite blue carbon’s premium positioning globally. Without stronger demand-side policy instruments, investment signals for blue carbon project development will remain weak.
Engaging coastal communities will boost restoration and conservation of blue carbon ecosystems, especially in mangrove ecosystems as standards and methodologies are readily available. The efforts will go beyond carbon as a number of ecosystem services may be captured in the broader context of the blue economy.
 
PY  - 2026 
PB  - CIFOR-ICRAF 
PP  - Bogor, Indonesia and Nairobi, Kenya 
UR  - https://www.cifor-icraf.org/knowledge/publication/9449/ 
DO  - https://doi.org/10.17528/cifor-icraf/009449 
KW  - blue carbon, carbon, carbon market, coastal areas, conservation, ecosystem services, mangroves, restoration 
ER  -
%T Indonesia’s leadership in the blue carbon economy 
%A Murdiyarso, D. 
%A Rahayu, K.D. 
%A Ardhani, T.S.P. 
%A Royna, M. 
%D 2026 
%I CIFOR-ICRAF 
%C Bogor, Indonesia and Nairobi, Kenya 
%U https://www.cifor-icraf.org/knowledge/publication/9449/ 
%R https://doi.org/10.17528/cifor-icraf/009449 
%X Key messages

Following approval of Articles 6.2 and 6.4 of the Paris Agreement at COP30, Indonesia is ready to implement Article 6 through several bilateral projects. Along the same line, complementing the Mutual Recognition Agreements (MRAs) with independent crediting schemes will build confidence to develop blue carbon projects.
Indonesia’s leadership in carbon governance, such as the Indonesian Carbon Exchange (IDXCarbon), has been recognized internationally as the best in an emerging economy. However, overlapping jurisdictional authority for blue carbon ecosystems remains a fundamental institutional barrier. Transparency and a participatory regulatory drafting process would enhance early public inputs and reduce risks.
Indonesia’s carbon market faces an urgent supply–demand imbalance, with limited domestic demand suppressing prices despite blue carbon’s premium positioning globally. Without stronger demand-side policy instruments, investment signals for blue carbon project development will remain weak.
Engaging coastal communities will boost restoration and conservation of blue carbon ecosystems, especially in mangrove ecosystems as standards and methodologies are readily available. The efforts will go beyond carbon as a number of ecosystem services may be captured in the broader context of the blue economy.
 
%K blue carbon 
%K carbon 
%K carbon market 
%K coastal areas 
%K conservation 
%K ecosystem services 
%K mangroves 
%K restoration 
    Publisher

    CIFOR-ICRAF: Bogor, Indonesia and Nairobi, Kenya

    Año de publicación

    2026

    Autores

    Murdiyarso, D.; Rahayu, K.D.; Ardhani, T.S.P.; Royna, M.

    Idioma

    English

    Palabras clave

    blue carbon, carbon, carbon market, coastal areas, conservation, ecosystem services, mangroves, restoration

    Geográfico

    Indonesia