EMISSION TRADING SYSTEM: LEGAL FRAMEWORK TO THE INDONESIAN CONTEXT TO REACH INDONESIA EMISSION REDUCTION TARGET

Abstract

Human civilization towards modern life bring impact to climate change; this is caused by high concentration of dangerous gases that trapped in the atmosphere. Indonesia has committed to reduce emission 29% (nationally) and 41% (internationally). One of mitigation process that can be choose by Indonesia is Emission Trading System. Emission Trading System has two types: credit and cap-and-trade. Since Indonesia already conduct credit carbon, cap-and-trade also need to be considered by Indonesia to be one of the efforts to mitigating climate change. Cap-and-trade has a big potential to be developed in Indonesia since it has supporting sources to be the carbon sink and it is flexible in choosing the system pattern so that it can suit the Indonesian laws and policies. This research aims to analyze the Emission Trading System designing elements in legal aspects, so that it will be known which is the appropriate legal framework for Indonesia Emission Trading System.