Urban gold mining credit: Designing a carbon credit mechanism for gold recovery from electronic waste

Abstract

Background: Indonesia generates 1.9 million tons of e-waste annually, with a 20% recycling rate. Printed circuit boards contain 240–340 grams of gold per ton, 300 times higher than natural ore. Urban mining recovers resources while reducing emissions, yet economic mechanisms remain underdeveloped. Indonesia's carbon credit infrastructure (SRN-PPI and IDX Carbon) provides potential to monetize environmental benefits. Methods: Research employs qualitative policy design with Life Cycle Assessment (LCA) following ISO 14040/14044. Comparative regulatory analysis examines how international carbon credit methodologies (Verra AMS-III.BA, Gold Standard) adapt to SRN-PPI requirements. Primary data includes Ministry regulatory documents and IDX Carbon specifications. Secondary data comprises peer-reviewed literature (2012–2025) on LCA, carbon pricing, and urban mining. Economic analysis uses discounted cash flow modeling with a 10-year projection and sensitivity analysis. Findings: LCA demonstrates urban gold mining from e-waste achieves 13,041 kg CO₂-equivalent per kilogram gold savings, 86.9% reduction versus the primary mining baseline of 15,000 kg CO₂-eq per kilogram. The hybrid carbon credit protocol adapts Verra methodology to SRN-PPI compliance, maintaining methodological integrity. Operational pathway from development through validation, registration, monitoring, and verification is clearly mapped. Economic analysis shows a 1,000-ton-per-year facility generates a baseline net present value of Rp 108 billion; carbon credit revenue adds Rp 274 million annually, while green gold premium significantly boosts the NPV to Rp 130 billion (+20.4%). Conclusion: Urban gold mining with integrated carbon credits and ESG-aligned bullion banking creates a viable pathway for Indonesia to formalize e-waste management and reduce emissions. Multi-stakeholder coordination is essential. Novelty/Originality of this article: First comprehensive integration of LCA, carbon credit protocol adapted to Indonesia's SRN-PPI, and green gold market analysis for urban precious metal recovery from e-waste in Southeast Asia.