The Indonesian and Japanese governments have signed a Mutual Recognition Arrangement (MRA) on the Joint Crediting Mechanism between Japan and Indonesia and the Indonesian Greenhouse Gases Emission Reduction Certification. The agreement, which will come into effect on October 28, 2024, is a strategic step that benefits both countries. The MRA includes mitigation action methodologies, emission reduction calculations, monitoring, reporting, and verification systems, and carbon credit certification. It opens up opportunities for the private sector to invest in sustainable projects and attracts international investors. The MRA can directly benefit communities most vulnerable to climate change impacts, improve the quality of life for communities through clean water, sanitation, and energy, involve local communities in project planning and monitoring, and raise public awareness about environmental conservation. Indirectly, the MRA can strengthen cooperation between the two governments in addressing climate change challenges and achieving the Sustainable Development Goals, while also enhancing Indonesia’s international reputation as a committed nation to sustainable development.