COP31 Demand Push Meets Tighter Credit Supply

Indonesia’s carbon-market community had a globally focused week: policymakers are looking for stronger credit demand, analysts are warning about reduced new supply, and Article 6 pipelines continue to mature outside Southeast Asia. For Indonesian developers and buyers, the key takeaway is that international rules, buyer preferences, and integrity requirements are moving quickly, even when domestic market liquidity remains selective.

Demand and Supply

COP31’s Turkish leadership plans to make stronger buyer appetite for carbon units a central theme of the summit, Carbon Pulse reported, signalling that voluntary and compliance-linked demand may receive fresh political attention this year. Carbon Pulse

New project issuances are slowing as developers adjust to updated standards and methodologies, according to analysts cited by Carbon Pulse, a shift that could support firmer pricing for credits that meet higher integrity expectations. Carbon Pulse

Carbon Pulse reported that UK woodland carbon units averaged about 5% higher in 2025, suggesting nature-based credits in mature registries can still gain value when buyers trust the framework. Carbon Pulse

Policy and Compliance

Carbon Pulse’s regional roundup says the EU border carbon regime is influencing electricity flows and policy choices across Central and Eastern Europe, while related disputes and domestic market plans are emerging nearby. Carbon Pulse

The UK’s climate advisory institution is preparing new aviation emissions work that will factor in major London airport growth plans, Carbon Pulse reported, adding another example of infrastructure decisions being tested against climate pathways. Carbon Pulse

A proposed EU clean-fuel support design for shipping is drawing industry interest but may be easier for large operators to use than smaller firms, according to Carbon Pulse’s feature coverage. Carbon Pulse

Experts told Carbon Pulse that e-methane interest is being pushed by upcoming policy goals, but accounting systems, compliance routes, and supply capacity are still underdeveloped. Carbon Pulse

Article 6 and Project Pipelines

Tanzania has approved a group of clean cooking and water access projects for Article 6 transactions, with Carbon Pulse citing local media on the project count and investment value. Carbon Pulse

The World Bank backed Kyrgyz energy-sector reforms that Carbon Pulse says are linked to the country’s first Article 6 carbon transaction, showing how development finance and mitigation transfers are increasingly being packaged together. Carbon Pulse

Nature and Climate Risk

South Africa is considering biodiversity-credit approaches within its national nature plan, Carbon Pulse reported, adding to the global experimentation with market tools beyond carbon. Carbon Pulse

Research covered by Carbon Pulse indicates Siberian permafrost is releasing methane at a faster pace than in past decades, underscoring the physical climate risks that carbon markets ultimately seek to reduce. Carbon Pulse

Market Watch

European allowance prices were slightly firmer during Thursday trading while energy contracts also rose, Carbon Pulse reported, keeping compliance-market participants alert to fuel and geopolitical drivers. Carbon Pulse