CNA Explains: What happens to carbon credits when the forests protecting them burn?

Wildfires in Indonesia are threatening forests linked to carbon credit projects. What does this mean for companies that have paid to offset their emissions, and are the safeguards enough?

Firefighters spray water at a wildfire in Ogan Ilir, South Sumatra, Indonesia, Sep 11, 2026. (Photo: CNA/Wisnu Agung Prasetyo)

Lauren Chian & Gladys Wee 02 Nov 2026 06:18PM Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Set CNA as your preferred source on Google Add CNA as a trusted source to help Google better understand and surface our content in search results. Read a summary of this article on FAST. Get bite-sized news via a newcards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST Imagine paying to protect a forest thousands of kilometres away, only to see it go up in flames. Has the climate benefit you paid for gone up in smoke too?

Companies purchase carbon credits overseas, including from Indonesia, to offset emissions from their operations.

The market continues to attract interest, with 1,056 new buyers from the Asia-Pacific region entering the carbon credit market last year, according to carbon market database Allied Offsets.

But with Indonesia's wildfires reaching areas linked to carbon credit projects, questions are emerging over whether those credits remain valid, who bears the cost of the carbon released, and whether existing safeguards are sufficient.