New Route for Agricultural Carbon Credits

Daily IntELigence Brief | 12 October 2026

Official Indonesian title: Peraturan Menteri Pertanian Nomor 18 Tahun 2026 tentang Tata Cara Perdagangan Karbon Melalui Offset Emisi Gas Rumah Kaca Sektor Pertanian.

Implications: SECTOR-SPECIFIC — Agricultural carbon developers, plantation and livestock operators, farmer institutions, investors and credit buyers. Project costs and expected carbon revenue will depend on meeting the new documentation, benefit-sharing and verification requirements.

Summary: Indonesia has set out a route for agricultural emissions reductions and removals to become carbon units. The regulation creates a clearer basis for developing projects, while adding approval and verification steps that sponsors will need to price into investment decisions.

What changed. The regulation was promulgated on 12 October. It covers rice cultivation, livestock and plantations. The Ministry of Agriculture’s summary describes project plans, cooperation and benefit sharing, independent validation and verification, and ministerial recommendations for carbon units. It also addresses existing projects and units. The text says the regulation takes effect three months after promulgation, with technical guidance due within that period.

Why it matters. A proposed project’s carbon yield alone will not establish its commercial viability. Sponsors will need to assess who can develop the project, how farmers and other participants share proceeds, the cost and timing of verification, and the steps required before units can be marketed. Those are practical investment implications drawn from the regulatory process; the rule does not establish a credit price or guarantee issuance.

What to watch. The technical guidance, particularly the filing route and treatment of projects already under development.

E&L uses AI unashamedly in all of our workflows. We wanted a quality daily briefing and were so pleased with the results we decided to share it here. Like Humans, AI can make mistakes - this is not formal advice, but intended to inspire discussion.

Image illustration credit: AI-generated editorial illustration of Indonesian agricultural land.