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Europe Reaffirms Its Commitment to Deforestation-Free Trade — EUDR Implementation Update Introduces Targeted Improvements for Smoother Transition The EUDR Implementation Update announced by the European Commission on 21 October 2025 confirms that the EU Deforestation Regulation (EUDR) will take effect as planned on 30 December 2025 for large and medium-sized companies, and on 30 December 2026 for micro and small enterprises. This EUDR Implementation Update introduces targeted simplifications to reporting procedures and strengthens the EU’s digital traceability system — ensuring that the transition toward deforestation-free trade remains efficient, inclusive, and achievable for all supply chain actors. Rather than delaying the regulation, the update ensures that Europe stays on schedule while addressing key implementation challenges for businesses, producers, and national authorities. Simplified Reporting, Same Environmental Ambition To make compliance more efficient, the Commission has introduced a simplified reporting framework: Only the first operator placing a product on the EU market will need to submit a due diligence statement  in the EUDR IT system. Downstream actors (retailers, distributors, or manufacturers) will no longer be required to file separate reports. Micro and small operators from low-risk countries will only need to provide a simple one-time declaration, minimizing administrative work. This streamlined approach is expected to reduce compliance costs by about 30%, without weakening environmental safeguards or traceability. The EUDR’s core objective remains unchanged — to ensure that commodities like palm oil, cocoa, coffee, soy, and timber sold in the EU do not originate from deforested land. Clear Timeline and Transitional Measures The entry into force date remains unchanged: 30 December 2025  → Large and medium-sized enterprises must comply. 30 December 2026  → Micro and small enterprises begin compliance. However, a six-month grace period will apply for checks and enforcement to allow companies and authorities to adapt gradually. This measured approach acknowledges that the EUDR IT system — launched in December 2024 — must handle millions of data entries from global supply chains. The added transitional flexibility ensures the system can operate reliably while maintaining transparency and traceability. Commitment to Effective Implementation The European Commission reiterated that this update does not dilute the EUDR’s ambition or delay its environmental objectives. Instead, it represents a practical and collaborative effort to make implementation work for everyone. “This approach provides certainty and stability, streamlining the process for micro and small producers while maintaining the law’s full ambition,”— Teresa Ribera, Executive Vice-President for a Clean, Just, and Competitive Transition. “It’s not about postponement — it’s about precision. We’re ensuring the rules are applied effectively, fairly, and on time,”— Jessika Roswall, Commissioner for Environment, Water Resilience, and a Competitive Circular Economy. A Step Toward Real-World Sustainability By confirming that the EUDR remains on schedule, the European Commission sends a clear signal: Europe’s environmental commitments are non-negotiable. The adjustments introduced this October are not about changing direction but about building readiness and confidence — ensuring that companies, governments, and smallholders are equally prepared for the transition to deforestation-free supply chains. As implementation continues, collaboration between the EU, producing countries, and private sector partners will be key to making the EUDR a global benchmark for credible, transparent, and inclusive sustainability regulation. Source: European Commission – “Commission proposes targeted measures to ensure the timely implementation of EU Deforestation Regulation,”  Press Release, 21 October 2025.

How the new EU–Indonesia Free Trade Agreement could strengthen economic ties, sustainability, and long-term cooperation The European Commission has officially announced the successful conclusion of negotiations for the EU–Indonesia Free Trade Agreement (FTA). This milestone strengthens the partnership between Europe and Indonesia, paving the way for more open, sustainable, and inclusive economic cooperation. The EU–Indonesia Free Trade Agreement, also referred to as the EU–Indonesia Comprehensive Economic Partnership Agreement (CEPA), aims to reduce trade barriers, promote investment, and enhance fair competition. While negotiations have concluded, the text will now go through legal revision and translation before ratification by both sides. Key Features of the EU–Indonesia Free Trade Agreement According to the European Commission’s official press release ( IP_25_2168 ), the EU–Indonesia CEPA is designed as a comprehensive and balanced trade agreement, covering: Trade in goods  — elimination of tariffs on more than 98% of tariff lines , with around 80% liberalized upon entry into force and the rest phased in within five years. Trade in services and investment  — improved market access and legal certainty for businesses operating in both regions. Customs cooperation and rules of origin  — measures to facilitate smoother, transparent, and predictable trade flows. Technical and regulatory aspects  — including sanitary and phytosanitary standards (SPS), technical barriers to trade (TBT), and intellectual property protection. Good regulatory practices, competition, and transparency  — ensuring fair and rules-based trade. Economic cooperation and capacity building  — promoting inclusive participation of small and medium-sized enterprises (SMEs) and supporting sustainable development goals. The agreement reflects a mutual commitment to strengthen economic ties while addressing shared challenges such as sustainability, fair trade, and regulatory transparency. Opportunities for Indonesia For Indonesia, the conclusion of this trade deal opens access to one of the world’s largest markets. With tariff reductions and stronger investment frameworks, Indonesian exports—such as textiles, footwear, machinery, and agricultural products—can compete more effectively in Europe. The EU–Indonesia Free Trade Agreement also promotes regulatory certainty and encourages long-term partnerships with European investors. Its inclusion of cooperation and capacity-building chapters will help Indonesian institutions and small enterprises improve competitiveness through knowledge transfer and technical assistance. In the long run, the EU–Indonesia CEPA provides a structured path for Indonesia to move up the value chain, aligning its production standards with global sustainability and quality benchmarks.. Implementation Challenges Despite its potential, the EU–Indonesia Free Trade Agreement comes with several challenges that require careful management: Regulatory alignment:  Ensuring that national laws and EU standards are harmonized for smooth implementation. SME inclusion:  Smaller businesses will need access to training, certification, and finance to benefit from the deal. Institutional readiness:  Agencies on both sides must coordinate closely on customs procedures and digital data exchange. Ratification process:  The agreement still requires formal approval by both the EU and Indonesia before it can enter into force. Addressing these issues will ensure that the EU–Indonesia partnership  delivers balanced benefits for businesses, workers, and communities. The Road Ahead As both sides prepare for ratification, maintaining constructive dialogue will be crucial. The EU–Indonesia Free Trade Agreement will work best when supported by mutual trust, transparency, and consistent implementation. Businesses that proactively strengthen their compliance systems—such as supply-chain traceability, quality assurance, and sustainability reporting—will be better positioned to benefit once the agreement becomes operational. The EU–Indonesia trade deal also sets an important example of how open markets can support shared goals on sustainable growth and fair trade. Conclusion The EU–Indonesia Free Trade Agreement marks a major step forward in global cooperation between the European Union and Indonesia. It lays a strong foundation for economic partnership built on openness, fairness, and sustainability. While the legal and political processes continue, both sides now share a clear direction: turning this agreement into a platform for long-term, inclusive growth. With strategic preparation and multi-stakeholder collaboration, Indonesia can position itself as a key partner in Europe’s sustainable trade future. Source: European Commission – Press Release IP_25_2168 , September 2025.

How Europe’s deforestation law postponement affects sustainability and global supply chains The European Union Deforestation Regulation (EUDR) was introduced to prevent products linked to deforestation from entering the EU market. The law requires companies to prove that commodities such as palm oil, coffee, cocoa, soy, and wood are not produced on deforested land. However, the European Commission is now considering delaying the law’s enforcement by one year , shifting the start date to December 2025 . The delay, intended to give companies and EU member states more time to prepare, has sparked debate across the private sector, policymakers, and environmental organizations. While the Commission argues that more time is needed to finalize its IT systems and support smallholder readiness, many see the move as a setback to Europe’s environmental leadership and global climate commitments. Business and Environmental Concerns over the EUDR Delay Several leading companies— Nestlé, Mars, Ferrero , and Olam Agri —have publicly urged the EU to move forward as planned. In a joint letter, they warned that postponing the law would undermine confidence in the EU’s sustainability agenda  and weaken the progress businesses have already made toward ethical and transparent sourcing. These companies have invested heavily in traceability tools, satellite mapping, and supply chain audits to align with EUDR standards. They argue that policy delays create uncertainty for responsible businesses while rewarding those that have yet to act. Environmental organizations share this view. They emphasize that every delay carries an environmental cost , allowing deforestation to continue and slowing momentum toward sustainable land use. Forests in tropical regions—particularly in Southeast Asia, Latin America, and Africa—remain under pressure from agriculture expansion. Advocates stress that EUDR is not just a regulatory requirement but also a moral commitment . By delaying implementation, the EU risks sending the wrong signal about its willingness to act decisively on climate and biodiversity protection. Implementation Challenges On the other hand, some stakeholders, including smallholder producers and EU member states, have expressed concerns about their readiness. Meeting EUDR requirements—such as geolocation mapping, data submission, and product traceability —poses real challenges, especially for farmers in developing regions. The European Commission has acknowledged these barriers and is exploring measures to help producers comply. Proposed support includes technical assistance, digital platforms, and transitional flexibility for countries that demonstrate clear progress. This approach reflects an important balance: the need to uphold environmental integrity while ensuring that the regulation remains fair, inclusive, and practical . The Way Forward The debate over the EUDR delay highlights a broader challenge—how to make sustainability both achievable and enforceable across global supply chains. Meaningful progress will require close collaboration between governments, companies, and producers , as well as transparent communication and capacity building. Even if the regulation is postponed, companies that continue improving traceability, supplier engagement, and risk management systems will be better positioned for compliance and long-term success. Ultimately, sustainability is no longer optional—it is a fundamental part of responsible business. The focus must remain on ensuring that global trade supports both economic growth and environmental protection. Conclusion The discussion surrounding the EUDR delay underscores one clear message: progress in sustainability demands consistency, commitment, and collaboration.  While additional preparation time may benefit some, the urgency of protecting forests and addressing climate change cannot be ignored. Businesses, regulators, and communities must continue working together to ensure that the global supply chain becomes not only more efficient—but also more ethical and resilient. Stay tuned for more updates as EUDR discussions evolve and shape the future of sustainable trade across Europe and beyond Source: https://www.reuters.com/sustainability/boards-policy-regulation/nestle-others-warn-eu-law-delays-are-endangering-forests-worldwide-2025-10-03/ https://www.globalcompliancenews.com/2025/10/02/https-insightplus-bakermckenzie-com-bm-consumer-goods-retail_1-european-union-commission-considering-delaying-eudr-application-for-another-year_09242025/ https://www.esgtoday.com/nestle-mars-other-companies-warn-against-proposed-delay-to-eus-supply-chain-deforestation-law/

Expanding Inclusive and Efficient Forest Certification for Small-Scale Producers On 18 July 2025 , the Forest Stewardship Council (FSC) officially approved the Asia-Pacific Regional Forest Stewardship Standard (AP RFSS)  as a full forest management standard. This decision marked the transition from its pilot status to an official certification framework, effective 1 July 2025 , following four years of trials in countries including Indonesia, Vietnam, Thailand, and India. AP RFSS has been developed specifically for smallholders and small-scale forest managers, aiming to overcome long-standing barriers related to the complexity and cost of conventional FSC certification. Why AP RFSS Matters Throughout the Asia-Pacific region, many smallholders manage forest areas under 5 hectares, often with limited resources and technical skills. The traditional FSC standard has been seen as too complicated for these situations. AP RFSS addresses these challenges through a more practical and context-adapted approach. Its main features include: Clearer and simplified language Flexible and proportionate compliance requirements More affordable and streamlined audit processes Emphasis on field-applicable sustainability practices This tailored approach enables broader participation in sustainable forest management and certification, particularly among smallholder communities. Promising Outcomes from the Pilot Stage Since its pilot launch in 2021, AP RFSS has produced promising results: Over 68 audits  conducted across four countries Approximately 57,000 hectares  of smallholder-managed land certified in Indonesia and Vietnam Positive feedback from farmer groups regarding the relevance and practicality of the standard Opened pathways for certification of non-timber forest products (NTFPs)  and ecosystem services These results played a key role in FSC’s decision to officially endorse AP RFSS as a complete standard for the Asia-Pacific region. Strategic Importance for Indonesia As a country with great potential in smallholder forestry, Indonesia can gain significantly from adopting AP RFSS, especially among: Forest Farmer Groups (Kelompok Tani Hutan/KTH) Forestry cooperatives and agroforestry communities Social forestry programmes and indigenous forest managers This new standard provides a more accessible pathway to international certification, helping smallholders meet market demands for legal and sustainable forest products and boosting their competitiveness in global supply chains. How Peterson Solutions (Indonesia) Can Support As a trusted partner in sustainability and certification services, Peterson Solutions (Indonesia)  is ready to assist organisations, cooperatives, and smallholders in adopting and achieving FSC certification through AP RFSS. Our services include: Technical assistance for AP RFSS compliance Supporting documentation, procedures, and field practices aligned with FSC indicators. Training for farmers and forest management groups Delivering accessible training materials tailored to practical application. Pre-audit assessments and certification readiness Conducting mock audits to identify gaps and ensure preparedness for formal audits. Support for NTFP and ecosystem service development Helping identify and develop sustainable business opportunities for added value. With a context-driven approach and proven on-the-ground experience, Peterson Solutions (Indonesia) is dedicated to making FSC certification more accessible, relevant, and impactful for smallholders and local communities.   Source: https://fsc.org/en/newscentre/general-news/asia-pacific-regional-forest-stewardship-standard-for-smallholders-now-an

Background: Building an Integrated Environmental Planning Framework As part of efforts to strengthen environmental protection and management, the Government of Indonesia has issued two key regulations: Government Regulation (GR) No. 22 of 2021 on the Implementation of Environmental Protection and Management  and GR No. 26 of 2025 on Environmental Protection and Management Planning . These two policies complement each other: GR 22/2021 focuses on technical implementation (such as EIA and environmental permits), while GR 26/2025 reinforces long-term strategic planning through the Environmental Protection and Management Plan (RPPLH) . With an approach based on environmental carrying capacity and load capacity, and enhanced coordination between central and regional governments, GR No. 26 of 2025 serves as a critical instrument to bridge the vision of sustainable environmental governance with national and regional development practices. Key Differences Between GR No. 22 of 2021 and GR No. 26 of 2025 Category GR No. 22 of 2021 GR No. 26 of 2025 Regulatory Focus Implementation of environmental protection and management, including environmental permitting Planning of environmental protection and management through RPPLH development Objective Provides legal basis for EIA, UKL-UPL, and environmental control mechanisms Serves as a reference for environmentally sound national and regional development Main Instruments EIA, UKL-UPL, SPPL, quality standards, environmental monitoring National, Provincial, and District/City-level RPPLH Approach Permit- and activity-based Based on environmental carrying capacity and load capacity, and eco-regions Role of Regional Government Executes environmental approvals and monitors activities Develops and establishes RPPLH as a reference for spatial planning and local development Integration with Spatial Planning Not explicitly required as reference for spatial plans RPPLH must be integrated into Spatial Plans (RTRW)  and Strategic Environmental Assessment (KLHS) Institutional Coordination Focused on permitting and supervision by MoEF and local governments Promotes synergy among MoEF, sectoral ministries/agencies, and local governments in planning Monitoring Supervision of business/activities based on permits Monitoring of RPPLH implementation and periodic evaluation every five years What’s New and Strengthened in GR No. 26 of 2025? Planning as a Foundation This regulation elevates environmental planning from being merely administrative to becoming a decision-making tool for development at all levels of government. Carrying Capacity and Eco-Regions GR 26/2025 adopts an approach based on environmental carrying and load capacity , aligned with eco-regional conditions  to ensure development remains within environmental limits. Integration with Spatial Plans and KLHS RPPLH is established as a key reference in preparing Spatial Plans (Rencana Tata Ruang Wilayah – RTRW)  and conducting Strategic Environmental Assessments (Kajian Lingkungan Hidup Strategis – KLHS) , ensuring that environmental considerations are embedded in land-use and sectoral planning. Evaluation and Reporting Every RPPLH must be reviewed every five years , with evaluation results used to update the plan and assess its effectiveness in environmental protection and management. Why This Matters Consistency Between Permits and Planning These two regulations together ensure a clear legal connection between strategic environmental planning (RPPLH) and its technical execution (environmental permits). Strengthened Legal Certainty RPPLH becomes a legitimate instrument to screen development plans based on environmental capacity, reducing conflicts in land-use decisions. More Controlled Development RPPLH integration into spatial planning helps prevent environmentally damaging expansion and promotes more sustainable land use. Conclusion GR No. 26 of 2025 marks a significant step forward in strengthening Indonesia’s environmental policy framework. Complementing GR No. 22 of 2021, this regulation ensures that all national and local development activities are anchored in a strong, planned, and sustainable environmental foundation. Collaboration between the central government, regional authorities, and relevant sectors is key to ensuring that RPPLH functions not just as a document—but as a guiding instrument for Indonesia’s greener and more resilient future.

Understanding the EU Deforestation Regulation (EUDR) The European Union has adopted the EU Deforestation Regulation (EUDR)  as part of its Green Deal to reduce the bloc’s global deforestation footprint. The regulation requires that products placed on or exported from the EU market must not be sourced from land deforested after 31 December 2020 . The regulation covers seven key commodities: palm oil, cocoa, coffee, soy, rubber, wood, and cattle , along with derived products such as furniture, leather, and processed foods. Implementation Timeline and Technical Guidance Initially set for 30 December 2024  for large companies and 30 June 2025  for SMEs, the European Commission has extended the deadlines following stakeholder feedback: 30 December 2025  for large operators 30 June 2026  for small and medium-sized enterprises (SMEs) In parallel, updated technical guidelines were released in April 2025 to streamline reporting and reduce compliance costs by up to 30%. A Digital Due Diligence System All operators placing in-scope products on the EU market will be required to submit a Due Diligence Statement  digitally via the EU’s official Information System. This declaration must include: Geolocation data of the production area Product volume and type Evidence of deforestation-free origin Compliance with relevant laws in the country of production These declarations carry legal weight and may be subject to verification by EU Member State authorities. Risk-Based Oversight The European Commission will categorise source countries under three risk levels: low, standard, or high . These classifications will determine the depth of scrutiny and documentation required. Indonesia, along with other major producers like Brazil and Malaysia, is expected to be under particular focus—especially for commodities with historical deforestation concerns. What Does This Mean for Indonesia? As a top global exporter of palm oil, rubber, and coffee , Indonesia stands to be directly affected by EUDR. Yet this also presents a unique opportunity to: Strengthen supply chain transparency , particularly for forest-linked commodities Elevate sustainability standards  across producers, cooperatives, and exporters Access green finance opportunities  through conservation-linked initiatives Unlock premium markets  with verified deforestation-free credentials Strategic Steps for Readiness To navigate this transition, stakeholders in Indonesia should prioritise the following: Geospatial supply chain mapping, Implement digital traceability tools to validate origin data. Risk and deforestation assessments, Identify at-risk areas and develop appropriate mitigation strategies. Capacity-building for smallholders and cooperatives, Deliver training and support to ensure practices align with EUDR standards. Foster multi-stakeholder collaboration, Involve government, private sector, and civil society to enhance credibility and data transparency. Building a Sustainable and Resilient Commodity Future EUDR should not be seen solely as a trade barrier, but as a catalyst for transforming Indonesia’s commodity sectors  towards greater transparency, accountability, and long-term market competitiveness. It offers a timely opportunity to align with global climate goals while enhancing Indonesia’s role in sustainable trade. How Peterson Solutions Indonesia Can Support At Peterson Solutions Indonesia , we provide end-to-end advisory services to support EUDR readiness, including: Supply chain risk mapping and assessment Traceability system design and implementation Training for field-level actors and exporters Digital due diligence reporting support With the right preparation and collaborative approach, Indonesian producers and exporters can not only comply with EUDR but lead in the global shift toward sustainable commodities.

PEFC Update: RED III Standards Officially Approved for Renewable Energy Compliance On 8 May 2025, the Programme for the Endorsement of Forest Certification (PEFC) General Assembly officially approved the long-anticipated PEFC RED III standards. This marks a major advancement in aligning forest biomass certification with the European Union's Renewable Energy Directive III (RED III), which sets stricter sustainability and greenhouse gas (GHG) requirements across the renewable energy sector. Strengthening PEFC's Alignment with RED III The approval represents the final procedural step in PEFC's standard-setting process. It follows a positive technical assessment from the European Commission (EC) in April 2025, confirming the readiness of the PEFC RED III certification scheme. The new standards allow PEFC Chain of Custody-certified organisations to obtain a PEFC RED III certificate, enabling them to demonstrate compliance with the sustainability criteria of RED III. Organisations not yet PEFC-certified can also access this framework by simultaneously obtaining both the Chain of Custody and RED III certificates. PEFC RED III certification is applicable worldwide and covers forest biomass, processing residues from forest industries, ligno-cellulosic waste, and fuels derived for heating, cooling, and electricity generation. Key Differences Between PEFC RED II and RED III Aspect PEFC RED II PEFC RED III Legal Alignment Based on RED II (Directive 2018/2001) Fully aligned with RED III (Directive 2023/2413) Certification Structure Separate from PEFC Chain of Custody Integrated with PEFC Chain of Custody with added requirements GHG Emissions Reporting Default values acceptable Requires reporting of actual or default values for full traceability Geographic Scope Primarily EU-based adoption Global applicability Compliance Pathways Single-level compliance mechanism Multi-level: Level A (risk assessment) and Level B (evidence-based) Documentation Requirements Less prescriptive More detailed audit trail and mandatory documentation Risk Assessment Framework Not formally defined PEFC ST 5004 enables recognised Level A national/subnational tools Key Features of PEFC RED III Certification The newly adopted PEFC RED III scheme is a revision of the previous RED II framework and introduces several core comp onents: Expanded Scope : It includes additional requirements for both certified organisations and certification bodies, defined under PEFC ST 5002 and ST 5003 respectively. GHG Calculations and Declarations : Certified producers must report default or actual GHG emissions values throughout the supply chain. Level A Risk Assessments : PEFC ST 5004 provides a mechanism for developing recognised national or sub-national risk assessments that verify compliance with harvesting and land-use carbon stock criteria under Article 29 of RED III. Multi-level Compliance Options : Forest biomass producers in countries with recognised Level A risk assessments are eligible for simplified compliance pathways. Where such assessments are lacking or partial, Level B compliance applies through additional PEFC certification and documentation. Implementation and Global Relevance PEFC RED III certification can be adopted by economic operators globally and is designed to ensure harmonised implementation while offering flexibility to suit different regional contexts. The PEFC scheme integrates seamlessly into the broader EU compliance framework by supporting data traceability and regulatory reporting obligations. This milestone reinforces PEFC's commitment to credible, transparent certification and provides renewable energy operators with a trusted route to demonstrate RED III compliance through sustainably sourced forest biomass. Peterson Solutions Indonesia  stands ready to support your transition to PEFC RED III certification. We offer tailored services including gap assessments, certification readiness support, and training on GHG emissions reporting and risk documentation. Source: https://www.pefc.org/news/pefc-general-assembly-greenlights-red-iii-standards

ASC Update: A New Unified Farm Standard for Responsible Aquaculture The Aquaculture Stewardship Council (ASC)  has released a significant update to its certification programme through the launch of a new unified Farm Standard , now officially in effect. This ASC update  consolidates multiple species-specific standards into a single, integrated framework that strengthens environmental safeguards, improves fish welfare practices, and enhances social responsibility across aquaculture operations. Key Highlights from the ASC Update to Farm Certification The ASC Farm Standard brings several significant changes aimed at improving efficiency, consistency, and impact across certified farms: One Standard for All : Consolidates various species-specific requirements into a unified certification framework. Stronger Fish Welfare Measures : Improved criteria for health, handling, and farming practices. Enhanced Social Safeguards : Clearer protection for workers’ rights and community well-being. Stricter Environmental Requirements : Science-based criteria to reduce biodiversity impact and support ecosystem health. Smarter, Flexible Certification : Designed to adapt to evolving market demands, regulations, and consumer expectations. Transition Period and Implementation The new Farm Standard became effective in May 2025 , with a two-year transition period  allowing farms to adopt the new requirements at their own pace. During this time: Current ASC Species Standards remain valid and in use Certified entities may switch to the new standard when ready ASC offers training, tools, and support to ensure a smooth transition Early adopters will be recognised for leadership in responsible aquaculture Why This Matters With the global demand for seafood increasing and sustainability expectations rising, the updated ASC Farm Standard enables producers and supply chain actors to: Meet compliance more effectively Strengthen supply chain credibility Prepare for future regulatory developments Deliver higher environmental and social performance Support for Your Transition At Peterson Solutions Indonesia, we assist businesses in navigating certification changes with confidence. Our services include: Gap assessments and readiness evaluations Training and capacity building on new ASC requirements Documentation development and stakeholder support Stay ahead by aligning your aquaculture operations with the updated ASC certification framework. For detailed guidance or implementation support, contact us on marketing-indonesia@onepeterson.com . Source: https://asc-aqua.org/news/the-standard-is-changing-join-asc-at-seafood-expo-global-2025-to-hear-more/

ISCC EU Officially Recognised Under the New Renewable Energy Directive (RED III) On 5 May 2025, the European Commission officially issued a positive technical assessment for the updated ISCC EU System Documents, marking an important advancement for ISCC EU RED III compliance. These updates align with the latest legal requirements under Directive (EU) 2023/2413, commonly referred to as the Renewable Energy Directive III (RED III), reinforcing the relevance of ISCC EU RED III implementation across multiple fuel categories. This recognition marks a significant milestone in strengthening credible sustainability certification in line with the EU’s evolving energy policy framework. The updated ISCC EU System Documents are mandatory for all ISCC System Users, auditors, and cooperating Certification Bodies. They also incorporate relevant changes from system updates issued between January and November 2024. Each document includes a clear summary of changes, and a full overview of major updates is available on the ISCC website. What’s New Compared to the Previous Version? The revised ISCC EU documents now reflect stricter legal standards than those under RED II. Key changes include: Broader Scope : Certification now explicitly covers renewable fuels of non-biological origin (RFNBOs), recycled carbon fuels (RCFs), and co-processed fuels. Enhanced Sustainability Criteria : Stricter requirements on land use, GHG emissions reporting, and feedstock traceability. Full Legal Alignment : All documentation has been updated to fully comply with the legal framework introduced under RED III. RED III sets more ambitious renewable energy targets and places greater emphasis on monitoring biomass and advanced fuel categories. Recognised Fuel Categories Under RED III With this recognition, ISCC EU is now officially approved to certify the following fuel categories: Biofuels, bioliquids, and biomass fuels Renewable fuels of non-biological origin (RFNBOs) Recycled carbon fuels (RCFs) Co-processed fuels The technical assessment for forest biomass criteria  is currently underway and pending final validation from the European Commission. Implementation Timeline and Transition Period The revised system documents and summaries of chachange summariesnges are available on the official ISCC website under the “ISCC EU” section. Effective Date : 21 May 2025 – All ISCC EU audits (certification and surveillance) must be conducted in line with the updated requirements from this date onward. Transition Period : Certificates issued prior to 21 May 2025 under the previous system remain valid until their stated expiry. There is no need for immediate re-certification. Material Stock : RED II-compliant materials certified before 21 May 2025 by a voluntary or national scheme recognised under Directive (EU) 2018/2001 may continue to be used to demonstrate compliance with RED III’s sustainability and GHG savings criteria. Upcoming Supporting Documents and Audit Tools By 21 May, the following will be made available: ISCC EU audit procedures Updated templates for Sustainability Declarations and Proofs of Sustainability (PoS) New ISCC EU certificate template (to be integrated into the ISCC HUB) ISCC is also finalising the integration of RED III requirements into the Audit Procedure System (APS), allowing auditors to perform audits fully aligned with the new directive. Updates regarding the availability of these tools will be shared through ISCC System Updates. Why This Matters This update reinforces the commitment to credible, transparent sustainability certification that aligns with the EU’s latest climate and energy directives. Businesses in the bioenergy and renewable fuel sectors must adapt quickly to stay compliant and competitive. Peterson Solutions Indonesia: Your Partner for RED III Transition As a certified consultancy with deep experience in sustainability, Peterson Solutions Indonesia is ready to support your business in: Understanding RED III requirements and their impact on supply chains Conducting gap assessments against the revised ISCC EU criteria Developing strategies and documentation for audit readiness We help ensure your operations remain competitive, compliant, and trusted by the market—stay tuned as we continue to provide guidance and updates ahead of the 21 May 2025 implementation.

Overview: Understanding Indonesia’s Carbon Credit Opportunity On April 7, 2025, the European Commission announced that it is considering allowing the use of international carbon credits to contribute toward its 2040 climate target. This policy proposal would represent a significant shift in the European Union’s (EU) approach to emissions reduction and could provide new opportunities for countries such as Indonesia to participate more actively in the global carbon market. If implemented, EU member states would be permitted to purchase certified carbon credits from emission-reduction projects located outside the EU—such as forest conservation, renewable energy development, and sustainable land management—and apply those credits to their national climate commitments. This signals a major Indonesia carbon credit opportunity for both government and private actors aiming to access global climate finance. Why This Matters The EU’s current climate framework requires that all emission reductions be achieved within its borders. However, growing economic and political concerns—particularly from industries facing increasing environmental regulations—have prompted the EU to explore more flexible mechanisms. By integrating international carbon credits, the EU seeks to balance achieving its climate goals with fostering global cooperation, while also addressing cost-effectiveness and fairness across sectors and countries. This adds weight to the Indonesia carbon credit opportunity as part of the global solution. Opportunities for Indonesia in the Global Carbon Market Indonesia is well-positioned to benefit from this potential shift in EU climate policy. With its vast natural resources and established climate initiatives, the country holds significant potential to develop internationally recognised carbon projects. This makes the Indonesia carbon credit opportunity one of the most compelling in Southeast Asia. Key sectors include: Forest conservation and reforestation Peatland and mangrove restoration Renewable energy development Climate-smart and sustainable agriculture Projects in these sectors may qualify for international carbon finance, provided they adhere to robust environmental, social, and governance (ESG) standards, as well as transparent verification protocols. This presents a timely opportunity for Indonesian stakeholders to attract global investment, strengthen their climate credentials, and contribute meaningfully to international climate objectives through the Indonesia carbon credit opportunity. How Businesses Can Prepare To benefit from this emerging opportunity, businesses and project developers in Indonesia can begin by taking the following steps to take full advantage of the Indonesia carbon credit opportunity: Assess Project Readiness Evaluate existing or planned projects to determine their eligibility for participation in international carbon credit schemes. Understand Certification Requirements Familiarize yourself with recognized international verification standards such as Verra (VCS), Gold Standard, and frameworks developed under the United Nations. Strengthen Monitoring and Documentation Establish clear systems for data collection, reporting, and verification to ensure transparency and traceability of carbon outcomes. Stay Informed on Policy Developments Monitor upcoming decisions from the European Commission, particularly the official release of its 2040 target, expected by mid-2025. Conclusion The European Commission’s consideration of international carbon credits marks a pivotal moment in global climate cooperation. For Indonesia, it signals a strategic opportunity to scale up climate-positive projects and integrate more deeply into the international carbon economy. The Indonesia carbon credit opportunity is more than a trend—it is a pathway toward sustainable growth, environmental credibility, and global impact. As a trusted consulting partner, Peterson Solutions (Indonesia)  helps businesses navigate this transition through end-to-end support—from assessing carbon project potential, ensuring certification readiness, developing climate finance strategies, to staying compliant with evolving regulations. By proactively aligning with global standards and preparing projects for international recognition, Indonesian stakeholders—backed by expert guidance—can unlock long-term economic value and contribute meaningfully to global climate goals. Source: https://www.reuters.com/sustainability/cop/eu-considering-international-co2-credits-meet-new-climate-goal-sources-say-2025-04-07

Background: Strengthening Palm Oil Sustainability Through Policy Reform To reinforce its commitment to sustainable palm oil production, the Government of Indonesia issued Presidential Regulation No. 16 of 2025 , replacing the earlier Presidential Regulation No. 44 of 2020 . Both regulations focus on the Indonesian Sustainable Palm Oil (ISPO)  certification system, but the 2025 update brings stronger institutional frameworks, clearer responsibilities, and more inclusive support for all actors—especially smallholders. Key Differences Between Presidential Regulation No. 44/2020 and No. 16/2025C Category Presidential Regulation No. 44/2020 Presidential Regulation No. 16/2025 Legal Status ISPO was formally established as a national sustainability certification system for the palm oil sector through a presidential mandate Officially repealing Presidential Regulation No. 44/2020 , ISPO will be reinforced as a binding national certification system with enhanced legal authority Scope of ISPO Certification It applies to plantation companies and smallholder farmers , focusing primarily on cultivation and processing activities Expand coverage to include plantation companies, palm oil downstream industries, and bioenergy operations (e.g., biomass, biogas) Implementation Obligation Mandatory for plantation companies with a phased implementation approach for smallholders Mandatory for all sectors with specific timelines: effective immediately for companies, within 2 years for downstream and bioenergy sectors, and within 4 years for smallholders Institutional Setup ISPO Committee operated under the Ministry of Agriculture with representation from relevant stakeholders. Establishes an Independent ISPO Commission reporting directly to the President, supported by a dedicated secretariat and operational units . Transparency Principle Transparency was introduced as Principle 6 but treated more as an encouraged practice rather than a mandatory requirement Transparency is now a binding requirement , explicitly mandated within the certification principles Monitoring & Evaluation Managed internally by committee Adds mandatory annual reporting  to the President Sanctions Enforced by the Ministry Includes clearer administrative sanctions and oversight mechanisms Stakeholder Involvement Encouraged informally Defines roles for the private sector, civil society, and academics Funding for Certification Government support is possible through various channels A more structured approach , especially for initial certifications Why This Matters Clearer Governance The new regulation brings more certainty to how ISPO is implemented and monitored, with an independent commission and a stronger legal foundation. Increased Accountability Mandatory annual reporting to the President ensures consistent evaluation and improvement of the certification process. More Inclusive Support Smallholders now receive clearer and more structured support—both technical and financial—ensuring they are not left behind. Conclusion Presidential Regulation No. 16 of 2025  marks a significant improvement in the governance of Indonesia’s palm oil sector. By replacing the 2020 regulation, it strengthens implementation, promotes accountability, and ensures that the push for sustainable palm oil  includes everyone—from large companies to individual smallholders.

Introduction: GGL Certification Aligns with RE100 Standards As the global push for renewable energy intensifies, ensuring the sustainability of energy sources like biomass becomes crucial. The Green Gold Label (GGL) certification has been recognized for meeting the stringent requirements set by RE100, a global initiative of businesses committed to 100% renewable electricity. RE100: Leading the Transition to Corporate Renewable Energy Established in 2014, RE100 is a collaborative initiative that brings together over 400 ambitious businesses worldwide, all dedicated to transitioning entirely to renewable electricity. These companies are actively working to influence policies that incorporate more renewable energy into the grid, even in the most challenging markets. GGL Certification: Meeting RE100's Biomass Criteria One of RE100’s recommendations emphasizes that biomass supplies should ideally be certified by a third party to ensure sustainability, accompanied by transparent greenhouse gas (GHG) data. GGL certification aligns with this recommendation by providing a comprehensive framework that covers the entire biomass supply chain up to the energy producer. This ensures that energy producers utilizing GGL-certified biomass can confidently demonstrate compliance with RE100's sustainability criteria. Benefits of GGL Certification for Energy Producers By obtaining GGL certification, energy producers can: Ensure Sustainability : Third-party verification confirms that biomass sourcing adheres to stringent sustainability standards.​ Access Reliable GHG Data : GGL provides transparent greenhouse gas data, aiding in accurate reporting and monitoring.​ Align with Global Initiatives : Certification facilitates compliance with international renewable energy commitments, such as those outlined by RE100. Conclusion: Advancing Renewable Energy Goals with GGL The alignment of GGL certification with RE100's requirements underscores the importance of credible certification in the renewable energy sector. Energy producers aiming for 100% renewable electricity can rely on GGL-certified biomass to meet sustainability standards and contribute meaningfully to global renewable energy objectives.