Indonesia, Japan Deepen Forest Carbon Partnership
Indonesia and Japan strengthened forest carbon cooperation through the Joint Crediting Mechanism, announced at COP31 in Antalya, Turkey.
Updated on Nov. 10, 2026 in Environmental
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Indonesia and Japan have strengthened forest carbon cooperation under the Joint Crediting Mechanism, announced on the sidelines of COP31 at the Indonesian Pavilion in Antalya, Turkey. The partnership aims to channel high-integrity carbon projects toward ecosystem restoration and biodiversity protection.
Why it matters
Japan's mandatory emissions trading phase creates demand for carbon credits, and Indonesia's large forest and peatland holdings position it as a supplier. The arrangement links climate finance with restoration goals intended to benefit local communities.
The figures are planned project areas and a national procurement target rather than verified outcomes, and the stub does not report how much of the 62 million hectares combined has been certified. Indonesia's pipeline includes 8.3 million hectares of social forestry and 1.4 million hectares of customary forests, but the share of credits these areas will generate remains unknown.
The players
Indonesia's Ministry of Forestry
The Indonesian government ministry responsible for forest management, which welcomes developing and supplying high-integrity offset credits from nature-based projects.
Japan's GX-ETS
Japan's Green Transformation emissions trading scheme, which entered its mandatory phase in 2026 and drives demand for carbon credits.
The details
Under the Joint Crediting Mechanism, the two governments cooperate to generate eligible carbon credits from projects in Indonesia. Indonesia encourages peat and mangrove ecosystems to be a key part of this cooperation, and these ecosystems make up a large part of its preparing project portfolio.
Timeline
2026: Japan's GX-ETS entered its mandatory phase.
2030: Japan's target for procuring about 100 million tons of CO2 credits.
November 10, 2026: Indonesia's Deputy Minister released the statement on JCM cooperation.
Market Landscape
The Joint Crediting Mechanism lets Japan count emission reductions achieved abroad toward its own targets, and this Indonesia cooperation extends that model into nature-based forest carbon. As Japan's mandatory emissions trading begins, the scale of forest credit supply from countries like Indonesia becomes a central question for the program.
For everyday readers, the arrangement could eventually shape where carbon offset projects are located and how restored land is managed. Whether communities see direct benefits depends on how the planned social forestry and customary forest projects are implemented.
The takeaway
Carbon markets tie national climate targets to specific land decisions, so monitoring how projects are verified will show whether restoration goals and credit volumes align. Watching certification progress offers a clearer picture than announced hectare totals alone.
Further reading
Explore more Environmental coverage for context on how carbon markets and ecosystem restoration intersect.
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