The fair and acceptable implementation of carbon market in Indonesia

Abstract

In the 27th Conference of the Parties (CoP), many countries committed to net zero pledges to reduce carbon emissions, including Indonesia’s pledge to achieve net zero by 2060 through raise target of Enhanced Nationally Determined Contribution (E-NDC) by 2030. These ambitious goals require significant financing and technical support. However, as a developing country, Indonesia must balance its sustainability efforts with its need for affordable and sufficient energy sources to support economic growth. This paper examines the effectiveness of policy measures in reducing carbon emissions and promoting climate change mitigation. Through a comprehensive review of existing literature, this paper assesses the implementation of carbon economic value in Indonesia in terms of their potential economic impacts, political feasibility and legal and institutional challenges. The paper analyses the interactions between these policy instruments and evaluates the benefits and challenges of combining different policy measures in promoting climate change mitigation. This paper highlights the importance of a comprehensive and coordinated approach to addressing climate change and provides valuable insights for policymakers in designing effective policy measures that facilitate the transition to a low carbon economy.