“Through a robust nesting approach, Indonesia can ensure that project-level carbon market activities are fully aligned with national climate commitments, reinforcing transparency, environmental integrity, and our pathway toward achieving national emission reduction targets,” said Ilham, Director of Forestry Business Development at the Ministry of Forestry.
The issue has also drawn strong interest from development partners supporting Indonesia’s forest and climate agenda.
Norwegian Ambassador to Indonesia Rut Krüger Giverin described nesting as an important next step in strengthening confidence in carbon markets.
“Norway is a long-standing partner to Indonesia’s efforts to reduce deforestation. Through collaboration with UN-REDD and other partners, we have supported the development of national forest monitoring systems, safeguards, and frameworks that underpin credible results,” she said.
“Strengthening clarity on nesting will help ensure that emission reductions are transparent and credible, while building long-term confidence in carbon markets and enabling high-integrity carbon transactions.”
Private sector participants say that clarity is increasingly becoming essential. Project developers and buyers alike point to uncertainty around accounting rules and benefit-sharing arrangements as major barriers to scaling investment.
Without clearer and more predictable frameworks, long-term investment decisions remain difficult — particularly in markets where integrity concerns continue to shape buyer behavior.
United Nations Resident Coordinator in Indonesia Gita Sabharwal said Indonesia’s progress is likely to carry implications well beyond its borders.
“Indonesia’s progress will be closely watched by neighboring countries, by buyers seeking high-integrity forest credits, and by a global community looking for climate leadership that delivers tangible results,” she said.
“Indonesia now has the opportunity to help define the global standard for jurisdictional forest action, grounded in integrity, equity, and national ownership.”
For many participants, the broader message is that the challenge facing Indonesia is no longer whether forest carbon markets will emerge, but whether countries can build the systems needed to make them credible, scalable, and investment ready.
As Ilham S.T., M.T., Director of Forestry Utilization Business Management, put it:
“Indonesia has a strong foundation, from its ambitious climate commitments and progressive regulatory framework to its growing carbon market ecosystem. The challenge ahead is not ambition, but operationalization.”