Provisions on Validation and Verification Body (LVV) in the Draft Carbon Regulation for the Agricultural Sector

The Ministry of Agriculture (“Kementan”) is finalizing the Draft Regulation of the Minister of Agriculture (“Draft Regulation”) on Procedures for Carbon Trading Through Greenhouse Gas (“GHG”) Emission Offsets in the Agricultural Sector, which also regulates the role of Validation and Verification Body (“LVV”). This regulation will serve as a guideline for implementing the economic value of carbon in the rice farming, livestock, and plantation subsectors.

“This Regulation will serve as a guideline for implementing the economic value of carbon in the agricultural subsectors,” said Ali Pramono, Junior Expert Standardization Analyst at the Agricultural Assembly and Testing Center of Kementan.

According to the draft obtained by Hukumonline, the functions of the LVV are carried out by an independent institution. Based on Article 7 and Article 8, this institution is responsible for validating the implementation plan outlined in the Mitigation Action Plan Document (“DRAM”), including reviewing the greenhouse gas emissions baseline, calculating carbon sequestration potential, determining the project period, conducting impact analyses, and ensuring compliance with the methodologies used.

The independent institution must be a legal entity, have expert validators or verifiers who are competent in the agricultural sector, and be accredited by the National Accreditation Committee (“KAN”).

Furthermore, Article 11 and Article 12 regulate the functions of independent institutions during the verification phase. These institutions assess and measure the alignment of mitigation action outcomes with established targets. The results are documented in a verification statement and report that include the level of quality assurance, implementation methods, and verification conclusions. The report is copied to the Minister.