As a large-scale REDD+ initiative in Central Kalimantan, Indonesia, Katingan avoids and removes emissions through a combination of avoided planned deforestation, peatland conservation & rewetting, and reforestation. Its baseline scenario reflects its original designation for development as an acacia plantation for timber and pulp, demonstrating high additionality of the carbon project. Patch’s confidence in the project’s additionality is corroborated by external analyses from rating agencies Sylvera and BeZero, both of which have assigned high ratings to project’s additionality.

Financial & Policy Additionality

The project is extremely robust in its claims of financial additionality. Not only is the project entirely dependent on carbon finance, inherently making a strong case for its financial additionality, its establishment required forgoing conversion to profitable pulpwood plantations, representing a significant opportunity cost. On regulatory additionality, the project is not mandated by any law, statute or other regulatory framework pertaining to the forestry and land-use sector in Indonesia. While Patch, along with Sylvera and BeZero, notes emerging policy risks from the recent establishment of Indonesia’s national registry system (SRN) – which Katingan is expected to transition into and withhold a portion of VCM credits for – this policy transition does not affect the additionality of the project.

Leakage

While leakage can be a risk with projects under the VM0007 methodology, especially when activities significantly shift commodity production (as is the case with Katingan), Patch believes the project has sufficiently addressed this through its conservative deductions of estimated emissions impact to account for market leakage, calculated in accordance with the methodology. Ecological leakage, a concern in peatland systems due to their interlinked hydrology, is actively managed through extensive peatland rewetting, restoring water levels and preventing subsidence and fire spread into neighboring areas. Furthermore, BeZero’s analysis did not find evidence of leakage as a result of avoiding land-use conversion – a conclusion supported by satellite monitoring and land use trends in surrounding areas.

Permanence

Katingan issues credits over a 60 year period, which is above standard for typical REDD+ projects. The project sets a 10% buffer pool contribution to account for non-permanence risk, in alignment with its use of Verra’s AFOLU Non-Permanence Risk Tool. The biggest risks originally identified by the developer include the project’s ability to obtain concession licenses and land use rights for the entire project area (2016-May-11 Revised Final PDD_RMU_clean (1).pdf, p. 248, found on the project registry) – an issue that has since been resolved; typical environmental risks associated with REDD+ projects, such as fire, drought, and pests, were found to have minimal impact on the peat carbon layer, which is the primary carbon pool for this project. Both Sylvera and BeZero have cited current permanence risks to be driven by Indonesia’s complex forest governance structure and political uncertainties, such as misalignment between local and national policies. However, these risks were deemed to be manageable with existing safeguards. 

Further details on the project’s additionality can be found in the project registry (2016-May-11 Revised Final PDD_RMU_clean (1).pdf, p.92)

The main carbon pools included in the project are aboveground tree biomass, as well as peatland. Other pools, such as aboveground non-tree biomass, or litter, were conservatively excluded, with project activities expected to increase those pools. Further details on project boundaries and GHG gas accounting can be found in the project registry (2016-May-11 Revised Final PDD_RMU_clean (1).pdf, p.89-92).

Katingan is known for its robust MRV system, combining a range of remote sensing and field sampling techniques with stratified emission accounting and peat-specific GHG analysis. Satellite imagery to detect land use change (and estimate corresponding emissions) is analyzed annually, complemented by 91 permanent sample plots that are monitored on a five-year basis. This layered approach to MRV, along with monitoring systems for microbial decomposition of peat and dissolved organic carbon (DOC) in water bodies, was recognized by Sylvera as a driver of the project’s minimal over-crediting risk. Furthermore, real-time fire detection systems and biodiversity monitoring have also been established to reduce fire-related emissions and track co-benefits.  

Additional details about the project’s MRV system can be found in the project registry (2016-May-11 Revised Final PDD_RMU_clean (1).pdf, p.214-221).

To date, the project has avoided over 35 MtCO₂e emissions, with verified credits issued for vintages up to 2020. Aside from Katingan, which the project developer, PT Rimba Makmur Utama (RMU), has been working on for over a decade, RMU has also developed other nature-based solution projects, including:

• Mentaya Sweet, a program to improve the sustainable coconut production, while raising farmer incomes; and
• Journey to Zero, a public awareness campaign aiming to reduce individual carbon footprints, particularly among youth.

The project’s team consists of a network of stakeholders led by RMU, combining internal experience in forestry, climate finance, and environmental policy with external partners for MRV integrity, scientific expertise, and community engagement. Key leadership, technical experts, and collaborating stakeholders include:

• Dharsono Hartono – CEO of RMU. A well known figure in Indonesia’s VCS ecosystem, Dharsono has an extensive background in financial engineering, and and has served on national advisory bodies for sustainable land-use policy.
• Rezal Kusumaatmadja – President Commissioner of RMU. Rezal brings to the role over 20 years of experience in natural resource management, community-based planning, forest conservation and sustainable forest management.
• Yus Rusila Noor – Head of Office, Wetlands International Indonesia. Wetlands International Indonesia leads on scientific and technical aspects of the project related to peatland hydrology, biodiversity management, and climate monitoring.

Notable buyers of Katingan’s credits include Boeing, Volkswagen, Singapore Airlines, CGI, and Standard Chartered Bank, all of whom have independently performed extensive due diligence. 

SDG Alignment

Katingan aligns with multiple SDGs, notably:

• 1. No Poverty
• 3. Good Health and Well-being
• 5. Gender Equality
• 6. Clean Water and Sanitation
• 8. Decent Work and Economic Growth
• 13. Climate Action
• 15. Life on Land
• 16. Peace, Justice, and Strong Institutions
• 17. Partnerships for the Goals

Details on SDG impact can be found in the project registry (VCS CCB Katingan Project Monitoring Report 2019 Final.pdf, p.20).

Certification & Quality Assurance

The project adheres to rigorous standards set by the Verified Carbon Standard (VCS) and the Climate, Community, and Biodiversity (CCB) Standards. Through the VCS, the project is held to high standards of environmental integrity, transparency, and community impact, verified through regular third-party audits. Additionally, the project is certified under Climate, Community, and Biodiversity (CCB) Standards, meaning the project will deliver exceptional contributions to climate adaptation, biodiversity preservation, and community development, further ensuring quality assurance across all activities.

Ecological Benefits

Katingan protects an ecologically vital peat ecosystem, home to orangutans, gibbons, and numerous endangered species. By preventing deforestation and maintaining forest connectivity, the project preserves large tracts of contiguous habitat – essential for many of these species. Furthermore, in protecting and restoring the peatland, the project is able to deliver on a range of air, soil, and water co-benefits. Not only does the minimization of peat fires reduce transboundary haze in the region, significantly improving air quality, the rewetting of peatland stabilizes the water table, preserving soil structure and maintaining hydrological functions such as the provision of clean water. 

Social & Economic Benefits

Over 500 jobs for local community members have been created as a result of project activities, particularly in fire patrols, nurseries, and monitoring. The project has also established a benefit-sharing mechanism with surrounding communities, wherein carbon revenues are reinvested into sustainable enterprises (e.g. production of virgin coconut oil and biodegradable seedling bags), public health services (e.g. support for 25 Posyandu community health centers), and educational support. Benefit-sharing is managed through Community Investment Funds, with field reporting and monitoring to promote transparency in fund allocation.

The Katingan Project is one of the world’s largest peatland REDD+ projects, covering 149,800 hectares and generating an average of 5–7 million tCO₂e in annual emissions reductions. To date, it has avoided over 35 million tonnes of CO₂e, with verified credits issued for vintages up to 2020. While future credit issuance is currently paused pending integration into Indonesia’s SRN/NEK systems, the project is well-positioned to adapt.

Patch considers the project type to have moderate potential for scalability in the region. Katingan’s own expansion potential is constrained by the Ecosystem Restoration Concession (ERC) it secured for the project – a novel and rarely used legal designation in Indonesia that allows for forest conservation in lieu of production. While there is no shortage of demand for peatland restoration in Indonesia – the country is home to more than 13Mha of peatlands, which have been under immense pressure from agricultural expansion and palm oil production – realizing this potential is complicated by Indonesia’s complex and evolving policy developments regarding forestry and carbon markets. Future growth depends on integration with Indonesia’s SRN/NEK schemes, which are still being finalized. Still, despite future regulatory uncertainty, Katingan stands as a benchmark for large-scale peatland REDD+ initiatives, demonstrating how high-integrity conservation efforts can deliver climate impact at scale.