Ecobiz.asia — The Forest Stewardship Council (FSC) is developing a global certification standard for carbon credits that will incorporate benefit-sharing requirements to ensure carbon revenues reach forest managers, Indigenous Peoples, and local communities, with implementation targeted to begin in 2029.
The new standard, currently under development, is expected to be completed in 2028 before being rolled out across multiple countries the following year.
“We have ongoing work on developing a method for carbon credits that will be completed in 2028, and my sense is that it will become available in most countries starting in 2029, but the process is ongoing,” FSC Director General Subhra Bhattacharjee told reporters after the signing of a memorandum of understanding between FSC and Indonesia’s Ministry of Forestry in Jakarta on Tuesday (June 30, 2026).
Although FSC does not currently certify carbon credits, Bhattacharjee said the organization already audits and verifies the amount of carbon sequestered in FSC-certified forests to support impact investment rather than tradable carbon credits.
“Right now FSC does not certify carbon credits. What we certify is the amount of carbon sequestered. It’s not tradable credits but the amount of carbon sequestered,” he said.
According to Bhattacharjee, the proposed certification system is designed not only to strengthen the environmental integrity of carbon credits but also to ensure that financial benefits are distributed fairly to those responsible for protecting forests.
“Making sure that the money from the carbon credit goes to the forest stewards, the Indigenous Peoples, local communities that manage the forest,” he said.
He added that carbon credits generated from FSC-certified forests are already widely recognized as high-quality credits and can command premium prices in some markets. The new certification standard is expected to reinforce that market confidence by introducing additional safeguards on social outcomes and benefit sharing.
Ahead of the new certification system, FSC has already strengthened its presence in voluntary carbon markets through a partnership with Verra. Since May 2026, Verra has introduced an FSC label for Verified Carbon Units (VCUs) generated from carbon projects in FSC-certified forests.
The label enables buyers to identify carbon credits originating from responsibly managed forests that meet FSC’s environmental and social standards, potentially increasing their attractiveness and value in voluntary carbon markets.
FSC is an international non-profit organization that sets standards for responsible forest management. More than 200 million hectares of forests worldwide are currently certified under FSC standards, including approximately 4.5 million hectares in Indonesia. ***
