children walking next to Indonesian river

Indonesia to test UN’s new carbon market amid fraud concerns

A UN-approved carbon market aims to launch next year, with Indonesia hoping to generate billions from carbon credits linked to its forests, though critics warn the system is vulnerable to fraud and double-counting.

Fred Pearce reports for Yale Environment 360.


In short:

  • Indonesia plans to sell carbon credits from its rainforests and peatlands under the new UN carbon market framework.
  • Critics argue the system’s loose regulations may enable fraudulent accounting and secrecy, undermining emissions reductions.
  • Past projects have raised concerns over inflated carbon savings and ineffective peatland restoration efforts.

Key quote:

“There are, it is true, a lot of players in Indonesia trying to get into the carbon market, but not all are committed to environmental and social goals.”

— Jakarta-based international expert who spoke on condition of anonymity

Why this matters:

Flawed carbon credit systems could undermine global emissions targets if fraud and double-counting persist. As Indonesia explores bilateral deals, lack of oversight could diminish the effectiveness of efforts to combat climate change.

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