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The world’s leading voluntary carbon standards body, Verra has signed a mutual recognition agreement (MRA) with the Indonesian government, with the aim of expanding the country’s access to climate finance by strengthening the integrity of its carbon markets. 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 in the week to October 3.
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. 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
In other news, carbon crediting platform Puro. earth has launched MyPuro 2.0, an updated version of its certification system that it said on Tuesday October 7 will make it faster and easier for carbon removal suppliers to certify projects and to obtain verified credits. The new platform includes real-time tracking, digitized methodologies and tools to streamline documentation and audits, the company said. It is intended to shorten the time between project validation and the issuance of CO2 Removal Certificates (CORCs), which are issued under the Puro Standard for projects that store carbon dioxide durably for at least 100 years.
“We are bringing MyPuro 2.0 to market with one goal: to make certifying high-quality, science-backed carbon removal credits as efficient and seamless as possible,” Puro.earth president Jan-Willem Bode said. “It not only improves workflows today but also unlocks the digitally verified issuance cycles of tomorrow.” The certifier said that the platform allows suppliers to upload project documentation, access certification guidelines, and share audit materials with Puro.earth and third parties.
The new system also enables auditors to access project information through a shared interface, which the company said will help to standardize the audit process. The system was developed with technology partner Alcove and includes an updated architecture that supports application programming interface (API) connections, notification systems and integration with digital monitoring, reporting and verification (dMRV) tools.
The company said that these functions create the foundation for high-frequency issuance capabilities and improved auditability while maintaining existing review standards. The rollout of MyPuro 2.0 will take place in phases over the coming months. The Helsinki based company will migrate its network of more than 360 carbon removal suppliers to the new system at no additional cost, it said, and will provide training materials and onboarding support as part of the transition. The new platform is designed to support suppliers working across a range of carbon removal approaches, it added, including biochar, enhanced rock weathering and carbonated building materials
The Carbon Markets are at the forefront of climate innovation, bridging the gap between corporate sustainability goals and global climate targets. Whether through nature-based credits, biochar or other durable carbon removals, VCM developments are setting a precedent for high-quality, impactful climate finance. To stay ahead in this dynamic landscape, subscribe to the Fastmarkets Carbon Newsletter. Every week, you’ll receive:
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The stories included in this article are taken from the Fastmarkets carbon markets news subscription service, from October 2025.