akar.earthNDC: Definition
What is an NDC (nationally determined contribution)? How Paris Agreement pledges work, Indonesia's NDC and forestry role, and why NDCs shape carbon markets.
An NDC (nationally determined contribution) is a country’s climate pledge under the Paris Agreement, setting out its emission reduction targets and adaptation plans. Each country sets its own NDC, updates it at least every five years, and reports progress to the UNFCCC.
Why it matters
NDCs define what each country counts as its climate effort. That shapes carbon markets. Any emission reduction inside a country contributes to its NDC by default. If the country transfers a unit abroad under Article 6, it must apply a corresponding adjustment so the tonne is not counted twice. NDC ambition also drives domestic carbon pricing, emissions trading and the government’s interest in keeping forest carbon at home.
How NDCs are tracked
- Targets: often expressed as a percentage below business as usual or a base year, sometimes split into unconditional and conditional parts.
- Sectors: energy, industry, waste, agriculture and forestry and other land use (FOLU).
- Reporting: under the Enhanced Transparency Framework, countries submit biennial transparency reports.
- Cooperation: Article 6 lets countries use ITMOs toward their NDCs.
Indonesia angle
Indonesia’s Enhanced NDC (2022) targets a 31.89% unconditional and 43.20% conditional reduction by 2030 against business as usual. The forestry and land-use sector carries the largest share, supported by the FOLU Net Sink 2030 policy, which aims for the sector to absorb more than it emits. This is why Perpres 110/2025 and Permenhut 6/2026 link carbon trading to national targets. See our page on Indonesia’s NDC for detail and any newer submissions.
Common mistakes
- Assuming voluntary credits are separate from the NDC; by default they are not.
- Quoting outdated NDC figures after a new submission.
- Ignoring the conditional part, which depends on international support.
Related terms
See corresponding adjustment, ITMO and FOLU Net Sink, or explore the Article 6 hub.
Frequently asked questions
What is Indonesia's NDC target?
Indonesia's Enhanced NDC (2022) set a 31.89% unconditional and 43.20% conditional emission reduction target by 2030 against business as usual. Check the UNFCCC registry for any newer submission.
Why do NDCs matter for voluntary carbon credits?
Credits generated inside a country also count toward its NDC unless a corresponding adjustment is applied. That affects which claims buyers can make and whether the government authorises exports.