Regulation of the Minister of Environment and Forestry no. 7 of 2023 concerning Procedures for Carbon Trading in the Forestry Sector.

This Regulation, in order to support the achievement of nationally determined contribution targets of the forestry sector, focuses on regulating carbon trading transactions and activities arising from climate change mitigation activities. These activities include, reduction of greenhouse gas (GHG) emissions through reduction of deforestation rate in forest and peatland areas, peatland restoration, mangrove rehabilitation, reforestation in former mining areas; development of plantation forest; sustainable forest management; biodiversity conservation.
The Regulation defines: carbon trading; forestry management; nationally determined contribution (NDC), as a national commitment to addressing global Climate Change in order to achieve the objectives of the Paris Agreement to the United Nations Framework Convention on Climate Change; greenhouse gases and their emissions; climate change mitigation actions; emission trading; business permits for forest utilisation; GHG emission reduction certificate; measurement, reporting and verification; social forestry management. The Regulation concerns: definition of a maximum allowable quota for international carbon trading, in order to favour business actors; issuance of carbon credits and incentives; imposition of emissions ceiling on peatland and mangrove management; limitation of carbon trading in the forestry sector to selected actors, including: holder of business permits, customary law communities, social forestry communities.