Indonesia greenlights first social forestry project to return to carbon market

**Indonesia & Brazil: Forest Carbon Supply Signals Diverge.** Indonesia has approved its first social forestry project to re-enter carbon trading after a prolonged hiatus, greenlighting the issuance of 238,281 carbon credits ([Carbon Pulse](https://carbon-pulse.com/555702/)). This is a significant milestone for REDD+ and community-based forestry supply from Southeast Asia, signaling that Indonesia's moratorium-era bottleneck is beginning to clear. Meanwhile, in Brazil, forest carbon co-developers report that foreign investors remain cautious, awaiting regulatory clarity on the country's upcoming regulated carbon market framework and Article 6 authorization processes before committing capital to new REDD+ and ARR projects ([Carbon Pulse](https://carbon-pulse.com/555573/)). The contrast highlights a widening gap: Asian supply is tentatively reopening while Latin American pipeline growth is stalling on policy uncertainty. **IC-VCM and Verra Advance CCS Crediting.** Verra announced that its Carbon Capture and Storage (CCS) methodology has received approval from the Integrity Council for the Voluntary Carbon Market (IC-VCM), a notable endorsement for engineered removals within the VCS standard ([Verra](https://verra.org/verra-secures-icvcm-approval-for-carbon-capture-and-storage-methodology/)). The registry simultaneously launched a public consultation and RFP for a new CO2 capture module under the CCS methodology, broadening the technical scope of eligible project activities ([Verra](https://verra.org/consultation-and-rfp-new-co2-capture-module-under-ccs-methodology/)). These developments could expand the universe of high-integrity removal credits over the medium term, narrowing the premium between nature-based and technology-based removal credits. Separately, a US environmental non-profit published principles for responsible carbon dioxide removal (CDR) scale-up, underscoring the policy community's effort to set guardrails before removal markets expand rapidly ([Carbon Pulse](https://carbon-pulse.com/555617/)). **Compliance Market Crosscurrents: Australia and New Zealand.** Australia's ACCU spot market remains subdued, described as "lethargic" while participants digest the wide range of policy proposals submitted during the Safeguard Mechanism review ([Carbon Pulse](https://carbon-pulse.com/555666/)). In New Zealand, key amendments to the Climate Change Response Act — including provisions to allow carbon removals into the NZ ETS and changes to industrial allocation and mandatory climate disclosure — have been shelved ahead of the November 7 election ([Carbon Pulse](https://carbon-pulse.com/555680/)). A Netherlands-based non-profit has also lodged a formal complaint with the European Commission alleging that New Zealand is backsliding on climate commitments under its EU free trade agreement ([Carbon Pulse](https://carbon-pulse.com/555646/)). These Oceania-Pacific developments may weigh on buyer confidence in the voluntary market, as overlapping compliance and disclosure regimes remain in flux. **Additionality Under Scrutiny in California; Ocean Science Raises Urgency.** California environmental groups filed an opening brief challenging changes to the state's Low Carbon Fuel Standard (LCFS), alleging that ARB-approved credits lack additionality and effectively allow fossil fuel companies to offset emissions with "fake credits" ([Carbon Pulse](https://carbon-pulse.com/555615/)). The outcome could have spillover effects on voluntary market integrity norms, particularly for cookstove and biofuel-adjacent credit types. On the demand-side narrative front, over 120 scientists issued what they called the "starkest warning yet" on ocean health, drawing on a decade of data to highlight accelerating sea temperature rise and biodiversity loss ([Carbon Pulse](https://carbon-pulse.com/555413/)). The report may reinforce corporate urgency around blue carbon and ocean-based credit purchases in the quarters ahead.