Advancing Mutual Recognition Agreements (MRAs) between Indonesia’s SRN and international standards to expand forestry carbon credits in VCMs

Indonesia’s forestry sector holds vast potential for offsetting emissions from major sectors like energy and industry, yet its participation in international voluntary carbon markets (VCMs) is hindered by regulatory uncertainty, limited recognition of Indonesia’s National Registry System (SRN), and restricted access to international standards. This paper examines how Mutual Recognition Agreements (MRAs) between SRN and major international standards – such as Verra, Gold Standard (GS), ART-TREES – could address these barriers. Employing a mixed-methods policy review design, the study combined a structured reviews of literature (e.g., government regulations, decrees, guidelines, and policy briefs; international standards’ guidelines; academic publications; and carbon market reports) with primary qualitative data from expert interviews and stakeholder consultations. Data were analyzed thematically through inductive and deductive coding, progressing from first-order codes to aggregate dimensions, with triangulation across documents, interviews, and consultations enhancing robustness. Findings highlight critical challenges in methodological alignment, transparency, validation and verification rigor, and registry interoperability. Stakeholders emphasized that well-designed MRAs could enhance SRN’s credibility, enable dual logo certification, strengthen investor confidence, and open sustainable revenue streams. A phased strategy, begining with mutual recognition of methodologies, progressing to dual validation, advancing toward full registry interoperability, could allow Indonesia to balance market access with regulatory sovereignty. If implemented under clear mandates and inclusive governance, MRAs could transform Indonesia’s forest carbon credits into credible global assets while supporting national climate goals.