Innovation

CarbonEthics emerged from a growing awareness of the urgent need to mitigate climate change, especially in Indonesia, an archipelagic nation highly vulnerable to rising sea levels. Founded in May 2019, just before the global pandemic, the organization not only survived but also expanded its social impact during this challenging period.

The company’s innovation lies in its nature-based carbon offset projects focusing on coastal ecosystems. CarbonEthics develops streamlined Artificial Intelligence (AI) training for land cover and tree height using satellite imagery to predict carbon absorption and reduction at scale. Each verified 1 (one) ton of carbon captured or reduced is converted into a Verified Carbon Unit (VCU), which is then sold to corporations seeking to offset their emissions.

Revenues generated from these carbon credits are reinvested into community development programs and environmental restoration. Through a blended climate finance model, CarbonEthics combines commercial funding (from carbon buyers and investors) with non-commercial sources (philanthropic donations and CSR funds). This hybrid structure ensures both profitability and long-term sustainability while maintaining measurable SDG impacts across environmental, social, and economic dimensions.

Inspiration

The founder and CEO of CarbonEthics was inspired by the lack of viable green jobs and the common misconception that environmental work equates to unpaid voluntary service. As he explained:

“I want green jobs to be properly paid and competitive with other industries so that young people who care about the environment can have equal opportunities.”

His professional background in international development, including experience with global organizations, strengthened his motivation to create a local and impactful solution that empowers communities rather than treating them as aid recipients.

“We don’t want to treat communities as only beneficiaries but as equal partners who can become independent and mature enough to manage their own future.”

This vision established CarbonEthics as a bridge between profit and purpose, demonstrating that climate action can generate both economic and social value while redefining environmental work as a respected and sustainable career path.

Overall impact

CarbonEthics’ innovation has generated both environmental and socio-economic impacts across Indonesia. Environmentally, thousands of hectares of mangroves in regions such as Aceh, Riau Islands, Java, and Kalimantan have been rehabilitated, resulting in significant carbon sequestration and increased coastal resilience.

Socially, the initiative has transformed local livelihoods by training fishermen, women, and youth to participate in mangrove cultivation, sustainable aquaculture, and digital carbon monitoring. The company applies a Social Return on Investment (SROI) framework to quantify impacts, converting social and environmental improvements into measurable monetary value aligned with SDG indicators.

In the long term, the project aims to build regenerative local ecosystems. It ensures intergenerational sustainability by engaging young people in green digital roles, motivating them to remain in their communities rather than migrate to urban centers for employment. This inclusive and regenerative model creates lasting economic and ecological benefits.

Business benefit

By implementing a blended financial structure, CarbonEthics sustains its operations through multiple revenue streams. The sale of carbon credits remains its primary income source, complemented by investments and CSR contributions. This approach strengthens financial resilience while enabling long-term social programs.

The company has successfully partnered with more than 240 corporations, including state-owned enterprises (BUMNs), to provide carbon offset and sustainability consulting services. Beyond transactions, CarbonEthics offers strategic advisory services to help clients integrate emission reduction into their operations, preventing “greenwashing” and ensuring genuine impact.

Because the company operates through an evidence-based, mission-driven model, it has achieved enhanced brand credibility, investor confidence, and new market opportunities. As a result, CarbonEthics is now recognized as Indonesia’s pioneering for-profit blue carbon developer, balancing profitability with measurable social and environmental progress.

Social and environmental benefit

The innovation contributes directly to socio-environmental transformation within Indonesia’s coastal communities. Locals who once relied on extractive or unsustainable practices, such as illegal logging, are now earning steady incomes through conservation-based livelihoods such as mangrove planting and eco-aquaculture.

CarbonEthics employs an economic-first approach to community engagement, ensuring that tangible financial benefits precede environmental education. This pragmatic strategy has proven effective in driving behavioral change and long-term commitment to sustainability.

Environmentally, the restored ecosystems enhance biodiversity, protect coastlines from erosion, and serve as major carbon sinks. Collaborations with local universities enable ongoing research, community-based data collection, and youth participation in sustainability initiatives. These partnerships strengthen scientific accuracy and foster a new generation of climate-conscious leaders in Indonesia.

Interview

Bimo Soewadji, CEO CarbonEthics