From Carbon Markets to Climate Justice: Legal Challenges in Advancing Equitable Environmental Sustainability
Abstract
Climate change has encouraged the adoption of carbon markets as a market-based mechanism for reducing greenhouse gas emissions and supporting sustainable development. In Indonesia, carbon market governance has expanded through regulatory reforms aimed at achieving the country’s Nationally Determined Contributions (NDCs) under the Paris Agreement. However, the implementation of carbon market mechanisms raises legal concerns related to equity, participation, accountability, and environmental justice. This study analyzes the legal challenges of carbon market governance in Indonesia and their implications for climate justice and environmental sustainability. Using a normative legal research method with statutory, conceptual, and comparative approaches, the study examines constitutional provisions, environmental legislation, climate regulations, and international legal instruments. The findings reveal that although Indonesia has established a legal framework for carbon market development, significant challenges remain, including regulatory fragmentation, legal uncertainty, inadequate protection of indigenous and local communities, inequitable benefit distribution, and limited public participation. The study concludes that integrating climate justice principles through stronger legal accountability, transparent benefit-sharing, community rights protection, and inclusive participation is essential to ensure that carbon market policies contribute not only to emission reductions but also to social equity, environmental integrity, and sustainable development in Indonesia.
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