In the world of carbon markets, not all carbon credits are created equal. Some, especially those tied to nature-based solutions like mangrove forests and seagrass meadows, offer more than just carbon sequestration, they also could help protect coastlines, support biodiversity, and strengthen local economies as well. These are known as blue carbon credits. And in Japan, they are being priced at a premium, offering valuable lessons for other countries, especially coastal nations like Indonesia.
- Japan’s Unique Approach: Local Impact, High Value
- Indonesia’s Blue Carbon Potential
- Indonesia’s Untapped Blue Carbon Potential
Japan’s Unique Approach: Local Impact, High Value
While most of the world’s blue carbon projects are still struggling to attract high prices, Japan has managed to sell blue carbon credits for up to $650 per ton of CO₂, far above the global average. The secret lies not just in carbon accounting, but in how the projects are designed and valued. Japan’s projects often involve local governments, community organizations, universities, and NGOs, creating a deeply rooted ecosystem of trust and participation.
Many of these projects focus on kelp and seagrass restoration, which are less common and more technically complex than mangrove projects, contributing to their higher value. Moreover, Japanese companies are willing to pay a premium for credits from domestic projects that offer strong co-benefits, such as community engagement and biodiversity protection. Their investments also aim to demonstrate social responsibility, strengthen their brand, and support local community engagement
For example, in Yokosuka City, a fishery cooperative sold tiny amounts of carbon (just 0.6 tonnes in 2023), but at $365 per ton, highlighting how storytelling, community involvement, and transparency can drive value, even in small-scale efforts.
Indonesia’s Blue Carbon Potential
Now, let’s look at Indonesia. It has the second-longest coastline in the world and one of the largest mangrove areas globally. It becomes home to over 3 million hectares of mangroves, many of which are still intact but under pressure from development and deforestation. Indonesia’s blue carbon ecosystems store up to four times more carbon per hectare than tropical forests, making them one of the most powerful tools for climate action.
But beyond carbon, these ecosystems could protect coastal communities from erosion and flooding, support fisheries that feed millions, and offer economic opportunities through sustainable tourism and aquaculture. So why isn’t Indonesia selling carbon credits at $650 per ton? The truth is, many Indonesian blue carbon projects lack certification, benefit-sharing agreements, or strong local governance that could drive up the credit value.
Moreover, the global carbon market often undervalues tropical nation’s contributions, in part due to a lack of visibility, transparency, and communication strategies.
Read more:
Blue Carbon in Indonesia, a Natural Weapon Against the Climate Crisis
Indonesia’s Untapped Blue Carbon Potential
To unlock premium prices like Japan, Indonesia needs to strengthen community ownership and participation in blue carbon projects. Involving local people in project design and decision-making increases legitimacy and makes the projects more attractive to ethical investors. At the same time, adopting certification standards that recognize co-benefits can help showcase not only carbon reductions but also positive impacts on livelihoods, biodiversity, and resilience.
These steps can increase transparency and justify higher credit values in the market. The other important thing is the ability to tell impactful stories that connect buyers to the real-world impacts of each project. Stories of fishermen earning better incomes, students gaining access to education, or mangroves protecting coastal villages bring carbon credits to life.
Indonesia could also develop local carbon markets to encourage domestic companies to support high-impact projects aligned with Corporate Social Responsibility (CSR) goals. To ensure credibility, partnerships with universities and NGOs (as seen in Japan) can help strengthen monitoring and verification. Together, these efforts can elevate Indonesia’s blue carbon to a premium class in the global market.
Increase the value of your blue carbon project in the global market. Get project development support with comprehensive planning, strong community engagement, and credible documentation. Consult your project development strategy with a team of experts.
Author: Ainur Subhan
Editor: Sabilla Reza
References:
Earth Security. (2025). Unlocking the blue carbon premium: How natural capital and resilience are repricing carbon. Earth Security Foresight. https://earthsecurity.org