Indonesia's Leading Climate Tech Startups Driving Peatland Restoration and Carbon Finance in 2025

Indonesia’s commitment to environmental sustainability and climate action is increasingly being driven by a dynamic wave of climate technology startups. These companies are emerging as critical players in the nation’s peatland restoration and carbon finance efforts, helping to safeguard biodiversity while contributing to Indonesia’s ambitious net-zero emissions targets set for 2060.

Peatlands, known as some of the planet’s most efficient carbon sinks, store billions of tons of carbon. Indonesia’s massive peatland ecosystems have been threatened historically by deforestation, drainage, and fires, releasing significant greenhouse gases. In recent years, the government and private sector have equipped themselves with innovative approaches to protect and restore these invaluable ecosystems. Central to these efforts are startups that integrate technology, finance, and community engagement.

Among the most prominent is CarbonEthics, founded in 2019. The company specializes in natural climate solutions focusing on restoring peatlands and blue carbon environments. Utilizing advanced ecosystem restoration techniques combined with digital tools for monitoring and reporting, CarbonEthics attracts both local and international investments while facilitating verified carbon credits. This innovative approach not only addresses carbon emissions but also enhances local livelihoods by empowering indigenous and local communities to partake sustainably in conservation activities.

Another rising startup is Fairatmos, established in 2022, which facilitates verified carbon offsetting to support Indonesia’s transition toward a net-zero future. Fairatmos builds bridges between project developers working on peatland and mangrove restoration and private sector actors looking to offset their carbon footprint. In 2022, Fairatmos raised USD 4.5 million in seed funding, signaling investor confidence in the scalability and impact of carbon projects linked to Indonesia’s natural ecosystems.

Besides these, CarbonShare plays a pivotal role by democratizing carbon offsetting. This startup empowers businesses and individuals to actively engage in carbon reduction projects, including peatland conservation, thus broadening the market and financial base for climate initiatives. Their solutions cater to bridging the green financing gap, an essential factor for achieving large-scale environmental restoration goals.

Other innovative ventures such as WasteX experiment with biochar solutions, which convert biomass into a form of charcoal that enhances soil quality and sequesters carbon, presenting sustainable agriculture and climate mitigation benefits simultaneously. This solution-oriented model demonstrates the diverse technology front within Indonesia’s emerging climate tech ecosystem.

The Indonesian government’s strategic vision to promote peatland restoration through public-private partnerships complements these entrepreneurial efforts. By investing in carbon markets and incentivizing sustainable land management, the state creates favorable conditions for startups to flourish. The ongoing development of the Katingan Mentaya peatland restoration project, one of the world’s largest, showcases effective collaboration where startups often participate as operators, verifiers, or technology providers.

Despite notable progress, challenges persist such as securing long-term capital, navigating regulatory complexities, and ensuring the equitable distribution of benefits among communities. However, the combined momentum from tech innovation, international funding, and government policy frameworks reflects a positive trajectory for Indonesia’s climate ambitions.

In conclusion, Indonesia’s leading climate tech startups represent a new frontier in environmental protection. By leveraging technology and finance to restore peatlands and manage carbon credits, startups like CarbonEthics, Fairatmos, and CarbonShare are instrumental in bridging the gap between economic development and ecological preservation. Their growth not only sets a benchmark for Southeast Asia but also reinforces Indonesia’s position as a leader in sustainable climate action.

This convergence of tech innovation and ecological stewardship is crucial as Indonesia strives to meet its net-zero 2060 target while protecting some of the world’s most critical and threatened ecosystems. The success of these startups will significantly influence the country’s ability to mitigate climate change impacts and transition toward a sustainable, low-carbon future.