Indonesia’s Carbon Ambition: What It Means for Carbon Tide and the Future of High-Integrity Carbon Markets in ASEAN

In January 2025, Indonesia launched its international carbon trading mechanism, with an ambitious goal: raise $65 billion by 2028 through the sale of carbon credits from conservation and reforestation initiatives. As a carbon, reforestation, and sustainability consultancy and developer operating across Southeast Asia, Carbon Tide views this milestone as both a catalyst for regional progress—and a call for vigilance.

Indonesia’s tropical ecosystems represent one of the largest untapped reservoirs of nature-based carbon credits in the world. But the credibility of this emerging market hinges not on quantity, but on quality.

At Carbon Tide, our mission is to develop and support projects that deliver genuine climate mitigation, ecological regeneration, and community empowerment. The evolving Indonesian carbon landscape aligns with our strategy—but only if stakeholders are prepared to prioritize environmental integrity over quick monetization.

A central challenge is the role of incumbent industries. Major palm oil and timber conglomerates are now repositioning their vast land concessions to generate carbon credits. While this shift toward conservation may seem promising, it comes with historical baggage—decades of deforestation, biodiversity loss, and Indigenous land disputes. Unless these projects are held to rigorous, independent standards, there is a real risk that the voluntary carbon market becomes a vehicle for greenwashing rather than real impact.

That’s why Carbon Tide focuses exclusively on projects that meet premium-grade criteria—those verified through credible methodologies (such as Verra or Gold Standard), demonstrate clear additionality, and deliver co-benefits for people and planet. Our flagship Riau Community Peatland and Mangrove (RCPM) Project is a prime example: combining high-integrity carbon sequestration with biodiversity protection and local livelihood development.

Recent developments, such as the Mutual Recognition Agreement between Indonesia’s SRN and Gold Standard, are encouraging. They help bridge domestic policy with international verification systems, streamlining access for high-quality projects to enter global markets. But this framework is only as strong as the enforcement mechanisms behind it.

As a regional actor headquartered in Singapore, Carbon Tide also sees a clear role for the Lion City in shaping ASEAN’s carbon future. Singapore's Climate Impact X, financial infrastructure, and ESG ambition place it in a unique position to champion transparency, impact-first financing, and investor education across the voluntary carbon space.

For Carbon Tide and other mission-driven developers, the road ahead is clear: we must build carbon projects that go beyond offsetting. Our responsibility is not only to reduce emissions—but to do so in a way that uplifts communities, protects ecosystems, and earns trust in a market still searching for its moral compass.

Indonesia’s $65B ambition is an open door. Let’s make sure it leads to a climate solution—not a missed opportunity.