(Bloomberg) -- One of the companies behind the world’s biggest carbon offsets project is asking an Indonesian court to allow it to continue to operate on 36,000 hectares in Borneo, an area roughly the size of Las Vegas. 

PT Rimba Raya Conservation filed a lawsuit in the Jakarta State Administrative Court against Indonesia’s Ministry of Environment and Forestry, which revoked the permit for the firm’s flagship project in Central Kalimantan late last year.

The Indonesian government said it pulled the license for PT Rimba Raya Conservation because the firm violated local carbon market rules. 

The firm disputes that, saying in a statement it “has always been fully compliant with Indonesian regulations on carbon trading,” including making necessary payments to the state. It is also asking the court to void the Ministry’s action and require the government to pay for the firm’s legal fees. 

The Indonesian government didn’t respond to a request for comment.

Read more: World’s Largest Forestry Offsets Project Has License Revoked

The Rimba Raya project has issued over 30 million credits, with more than 25 million retired, according to data from non-profit CarbonPlan, making it the largest in the world. The Indonesian government, which has banned the export of offsets since 2022, last year signaled restrictions could lift once local regulations and standards are in place.

PT Rimba Raya Conservation says it is seeking to register the project under Indonesia’s new carbon registry.

--With assistance from Eko Listiyorini.

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