The Carbon Pricing Policy in Indonesia Towards Paris Agreement Implementation

Carbon pricing is a policy instrument aimed to accelerate Paris Agreement goal. Due to its vast natural resources, Indonesia intends to promote Nature-Based Solutions (NBS) as part of its national and global climate mitigation plan, as it also yields other co-benefits in terms of climate adaptation and biodiversity protection. The new carbon exchange has been launched to expedite carbon trading in Indonesia. This study examines the policy impacts of carbon pricing in Indonesia through emissions trading schemes, crediting mechanisms, result-based payments, and carbon taxes in the FOLU, energy, and waste sectors.