Government Prepares Regulation of the Minister of Environment on Blue Carbon

The Ministry of Environment (Kementerian Lingkungan Hidup – “KLH”) is preparing a Draft Ministerial Regulation (“Draft Regulation”) on Blue Carbon. Irawan Asaad, Director of Climate Change Control Resource Mobilization at the KLH, stated that the proposed regulation is intended to provide legal and technical certainty to enable blue carbon projects to be promptly incorporated into the national registry system.

“There will be a specific Ministerial Regulation on blue carbon so that it can be promptly incorporated into the carbon unit registry system, through which it can subsequently be monetized,” Irawan said.

Irawan explained that technical regulations are necessary to standardize the methodology for the measurement, reporting, and verification (“MRV”) of blue carbon. Such standardization is necessary to ensure that blue carbon data can be recognized under both national and international systems.

In addition, the Ministerial Regulation will provide greater certainty regarding the implementation of Carbon Economic Value (Nilai Ekonomi Karbon – “NEK”) in the marine sector, including benefit-sharing schemes for coastal communities and requirements applicable to private-sector entities participating in blue carbon projects.

The Ministerial Regulation is also intended to support efforts to harmonize spatial data across government agencies to prevent overlaps in the management and development of blue carbon projects.