Buildings are one of the largest emission contributors in Indonesia. Therefore, encouraging decarbonization in the building sector through innovative funding solutions is crucial. The Ministry of Energy and Mineral Resources (MEMR) of Indonesia, in collaboration with PEEB, is conducting a training program focusing on governance, institutional coordination, and sectoral implementation frameworks related to Article 6 mechanisms.
PEEB and MEMR brought together key ministries and financial institutions to jointly learn about governance readiness for Article 6 implementation in Indonesia’s building sector during a two-day workshop held on 4–5 November 2025. This training aligns with the Ministry of Environment’s vision on the importance of strengthening the Government of Indonesia’s capacity in governance and frameworks for Article 6 implementation.
Background
Indonesia has made significant progress in establishing the regulatory foundation for carbon pricing and international cooperation under the Paris Agreement, including Presidential Regulation No. 110/2025 on Carbon Economic Value, the development of the national registry system (SRN-PPI), and initial bilateral agreements under Article 6 with Japan and Norway. To expand cooperation opportunities, Indonesia has also entered into mutual recognition agreements (MRA) with Gold Standard, Verra, and Plan Vivo as well as MOUs with ICVCM, VCMI and also GCC.
However, the overall readiness to operationalise Article 6 mechanisms still needs to be strengthened, particularly regarding governance, institutional coordination, and sectoral implementation frameworks. The buildings sector—one of Indonesia’s fastest-growing sources of greenhouse gas emissions—offers substantial mitigation potential, yet requires clear institutional roles, robust data systems, and effective authorisation processes to participate in international carbon markets.
Against this backdrop, the training strengthened the understanding of Article 6 governance and framework requirements among key Indonesian ministries and agencies, and to explore how the buildings sector can prepare for future participation in cooperative approaches under the Paris Agreement.
The objective of the training was to enhance the institutional and technical understanding of Indonesia’s key ministries and agencies on the governance and framework requirements for implementing Article 6 of the Paris Agreement. During the workshop, participants achieved:
- A clearer understanding of the governance structures, institutional coordination, and authorisation processes required to operationalise Article 6 in Indonesia.
- Strengthened awareness of the technical, legal, and data prerequisites for developing and registering mitigation activities under Article 6.
- Identification of entry points for the buildings sector within Indonesia’s evolving carbon market framework, along with capacity-building needs across ministries.
- Agreement on practical next steps to support inter-ministerial collaboration and readiness for future cooperative approaches in the buildings sector.
- Article 6 offers a pathway to mobilise cooperation, finance, and innovation. Strengthening governance today means Indonesia’s buildings sector can benefit from these opportunities tomorrow.