World’s Largest Forestry Offsets Project Has License Revoked

By Sheryl Tian Tong Lee
BNN Bloomberg
April 30, 2024
Category: Carbon, Climate & Bioenergy
Region: International

The future of one of the world’s largest carbon offsets projects is in doubt, after the Indonesian government revoked its license for violating local regulations. The Ministry of Environment and Forestry’s action covers more than 36,000 hectares on the island of Borneo. The area is part of a project that has issued more than 30 million credits since 2013, according to data from non-profit CarbonPlan. The government cited the license-holder, PT Rimba Raya Conservation, for three offenses: The company transferred its license to a third-party without ministry approval, operated beyond its sanctioned area, and failed to make required payments to the state, according to a statement from the ministry in March. Given the project’s scale, the government’s action creates potential consequences for carbon exchanges, traders, and companies that have bought Rimba Raya credits to offset emissions. It also highlights the risks that can be obscured by multiple participants, and the threat of emerging and rapidly changing government regulations.

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