DESIGNING AUDIT-DEFENSIBLE DIGITAL MRV FOR CARBON CONSERVATION: LESSONS FROM THE VMRV/VCARBON CASE IN INDONESIA

Abstract

The increasing demand for transparency, accountability, and environmental integrity in carbon conservation has accelerated the transition from conventional Measurement, Reporting, and Verification (MRV) systems to digital MRV (Digital MRV). However, many existing digital platforms continue to face challenges related to data traceability, interoperability, audit readiness, and compliance with international carbon accounting standards. This study aims to develop an audit-defensible Digital MRV framework for carbon conservation by examining the implementation of the VMRV/VCARBON platform in Indonesia. A qualitative case study approach was employed using the Design Science Research (DSR) methodology to analyze the design principles of a reliable Digital MRV system. Data were collected through semi-structured interviews with carbon project stakeholders, Digital MRV developers, auditors, environmental experts, and policymakers, complemented by document analysis of technical reports, regulatory frameworks, IPCC guidelines, UNFCCC transparency requirements, and ISO 14064 standards. The data were analyzed using thematic analysis to identify key dimensions of an audit-defensible Digital MRV architecture. The findings indicate that the VMRV/VCARBON platform significantly enhances transparency, traceability, accountability, and data integrity by integrating remote sensing, cloud computing, artificial intelligence, standardized carbon accounting methodologies, digital audit trails, and registry management within a unified digital ecosystem. The study also identifies institutional interoperability, methodological standardization, human resource capacity, and cybersecurity as critical challenges for large-scale implementation. Based on these findings, the study proposes an audit-defensible Digital MRV framework consisting of six interconnected dimensions: digital data acquisition, automated carbon estimation, governance and regulatory compliance, digital auditing, registry integration, and decision-support systems. The proposed framework contributes to both theory and practice by providing a comprehensive model for developing transparent, scalable, and internationally credible Digital MRV systems that support carbon conservation, strengthen environmental integrity, and enhance Indonesia's participation in global voluntary carbon markets.