Verra suspends registry account of Rimba Raya project's proponent

Verra, the world's largest carbon credit issuer, has suspended the registry account of the developer of the Rimba Raya carbon project in Indonesia, resulting in disruptions in the voluntary carbon market.

"Verra has announced that it has suspended the registry account of the Rimba Raya Biodiversity Project's proponent, InfiniteEARTH," Verra's spokesperson said in a statement late May 20.

Verra said it has written to InfiniteEARTH seeking clarification on several matters, including the revocation of the Forestry Business Utilization License by the Indonesian government, and whether InfiniteEARTH still has a role in the Rimba Raya Project.

"InfiniteEARTH has seven days to respond, after which Verra may take further action under its program rules and requirements. During this period, Verra will refrain from providing commentary on the project or the fact-finding process to maintain impartiality," the spokesperson said.

Verra said it was also aware of a media release issued by PT Rimba Raya Conservation, the Rimba Raya project's owner, stating that PT Rimba Raya's petition to suspend the Ministry of Environment and Forestry, or MOEF, Decree 1028/2023 has been granted.

Rimba Raya is one of the world's largest REDD+ [Reduced Emissions from Deforestation and Forest Degradation] project. From June 2013 to April 2024, 33.63 million carbon credits were issued from the Rimba Raya project, accounting for about 6.84% of total nature-based avoidance credits issued by Verra, S&P Global Commodity Insights data showed.

On March 2, Indonesia's MOEF announced that it had revoked the Forest Utilization Business Agreements (PBPH) possessed by the project's owner, PT Rimba Raya Conservation, under MOEF Decree 1028/2023, citing violation of local laws and regulations, including transferring its permit to third parties without the MOEF's approval, conducting carbon trading transactions beyond the licensed area, and not paying non-tax state revenues to the government.

On May 6, PT Rimba Raya Conservation issued a statement on its social media account saying the MOEF had revoked the license on Sept. 15, 2023. It said it had taken legal action to challenge the revocation of its PBPH in the Jakarta State Administrative Court to annul the MOEF Decree 1028/2023.

In the same statement, PT Rimba Raya said it had terminated cooperation with InfiniteEARTH since 2023. InfiniteEARTH was initially authorized to be the project's developer and was registered with both Verra's registry and Indonesia's domestic carbon registry, called Sistem Registri Nasional, or SRN.

Platts assessed the price of nature-based avoidance carbon credit at $3.5/mtCO2e on May 20, showed Commodity Insights data.