Ecobiz.asia – Project integrity has become the centerpiece of discussions in voluntary carbon markets as global buyers increasingly demand not only emission reductions but also social accountability, good governance, and meaningful engagement with local communities.
This shift was highlighted by Saras Suteja, Global Business Development Lead at CarbonEX, during a forum titled “Beyond Business-as-Usual: Carbon Project Integrity from the Buyer’s Perspective” held in Jakarta on Wednesday (June 18, 2025).
“Carbon projects are no longer just about carbon,” Saras said. “They’re about how you interact with local communities, respect Indigenous practices, and share the benefits fairly.”
Her remarks come amid growing scrutiny of carbon offset projects following several high-profile scandals.
Allegations of human rights violations at the Southern Cardamom project in Cambodia and over-crediting issues in cookstove programs have raised serious concerns.
Independent investigations and media reports have revealed governance failures and discrepancies between official project documents and on-the-ground realities.
“One bad headline can collapse a project’s reputation, no matter how certified it is on paper,” Saras warned. “Reputation doesn’t show up in documentation. But the market reacts instantly to negative exposure.”
The resulting integrity crisis, Saras noted, has changed buyer behavior. Many corporations now favor removals projects—such as afforestation or carbon capture—over avoidance efforts, which prevent emissions from being released in the first place.
While removals are perceived as more credible and less risky, she cautioned that this preference often lacks analytical depth.
“Buyers follow trends or external ratings without fully understanding the rationale,” she said. “It’s become a reputational risk management game, not always a scientifically grounded one.”
Saras also pointed to specific regulatory challenges in Indonesia. A government-imposed moratorium on the issuance of carbon credits in early 2021 disrupted many domestic projects, affecting their revenue streams, long-term planning, and viability.
“As Indonesians, we know how hard that moratorium hit our projects,” she said.
She added that such regulatory uncertainty puts Indonesian projects at a competitive disadvantage, despite their strong mitigation potential.
While new global frameworks like ICVCM (Integrity Council for the Voluntary Carbon Market) and CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) offer a chance to restore market confidence, Saras emphasized that certification and emissions data alone are not enough.
“Carbon markets need to grow—not just in volume, but in credibility,” she concluded. “Transparency, community engagement, and strong national policy support are just as critical.” ***