Key messages
- Public finance remains the backbone of mangrove investment in Indonesia, channelling resources through national budgets, subnational implementation systems and international partnerships.
- Market-based mechanisms, especially voluntary carbon approaches, have gained the most attention in blue carbon mangrove value chain (BCMVC) financing based on integrating monitoring systems with national carbon registries, with civil society organizations taking a leading role in grounding, developing and testing diverse business models.
- Indonesia has established a strong regulatory and institutional framework for blue carbon finance and investment, but scaling will depend on transaction readiness. Priority actions include clarifying carbon rights and authorization, strengthening benefit sharing arrangements, improving the affordability and credibility of measurement, reporting and verification (MRV), and operationalizing trust funds, PPPs and revenue-linked systems so projects can move from design to deals.
- A well-designed blue carbon mangrove value chain can generate triple dividends through climate mitigation and adaptation, coastal resilience and biodiversity gains, and improved livelihoods and social equity, especially when local communities are engaged as co-designers, co-managers and beneficiaries.
- Governance and capacity are the main enablers of equitable scaling. Capacity development should focus on what makes projects investable and inclusive, particularly MRV, project structuring, benefit sharing and community negotiation skills, so government, communities and market actors can reduce transaction costs and deliver credible, bankable mangrove projects.
This work is licensed under CC-BY 4.0
DOI:
https://doi.org/10.17528/cifor-icraf/009468Altmetric score:
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Publisher
CIFOR-ICRAF: Bogor, Indonesia and Nairobi, Kenya
Publication year
2026
Authors
Erlangga, E.; Leimona, B.; Murdiyarso, D.
Language
English
Keywords
blue carbon, carbon markets, climate, coastal areas, community involvement, ecosystem services, environmental management, finance, mangroves, natural resources management, sustainable development
Geographic
Indonesia
