Smart Net-Zero

April 30, 2024 | The Straits Time | 

In Jakarta, the Indonesian government has revoked the license of one of the world’s largest carbon offsets projects in Central Kalimantan, Borneo, covering over 36,000 hectares. Rimba Raya Conservation, responsible for issuing more than 30 million credits since 2013, faces allegations of violating local regulations by transferring its license without approval, exceeding its sanctioned area, and failing to make required payments. This move raises uncertainties for carbon markets, traders, and companies relying on Rimba Raya credits to offset emissions. It underscores the risks associated with complex carbon offset schemes amid evolving government regulations. The development could impact partners like Hong Kong-based InfiniteEarth, which markets the project and is seeking clarity from Indonesian authorities. Toronto-based Carbon Streaming, set to buy millions of credits, is also awaiting further updates.