The Urgency of Carbon-Based Market Mechanisms for Reducing Emissions in Indonesia (PJOK No. 14 of 2023)

Authors

  • Mir’atul Hayati Stated Islamic University of Salatiga
  • Meli Ekhsanti Stated Islamic University of Salatiga

Keywords:

Carbon market mechanism, emission reduction, PJOK No. 14 of 2023

Abstract

This article discusses carbon trading as a form of market-based mechanism in efforts to reduce emissions in Indonesia. By referring to PJOK regulation no. 14 of 2023 as a legal instrument related to carbon trading mechanisms, it is found that carbon trading is a market-based mechanism to reduce greenhouse gas emissions through buying and selling carbon units. This has the effect of many companies buying carbon from companies that use less carbon. This then raises the question: what are the benefits for companies that are able to reduce carbon use. The research method used in this research is juridical-normative with a statutory approach and a conceptual approach. By reviewing the regulations and norms related to carbon trading arrangements. That companies that are able to reduce carbon emissions are able to earn additional profits from selling carbon, and continue to be intensive in continuing to reduce carbon.

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Published

2024-01-16