Legal Implications of the Law on Development and Strengthening the Financial Sector Regarding the Carbon Exchange Towards Indonesia Net-zero Emission and Green Investment

Global warming and climate change have become urgent global issues, prompting many countries to take concrete steps to reduce greenhouse gas emissions. One instrument considered crucial in this effort is the carbon market, which allows countries and businesses to buy and sell carbon credits as part of their emission reduction strategies. However, the implementation of carbon markets in Indonesia faces several challenges, including an immature legal framework. This raises legal issues regarding the implementation of regulations, along with the challenges and opportunities that will arise. To address these questions, the research analysis uses a normative juridical research approach. The research results show that regulations related to carbon markets in Indonesia are already regulated in the Law on the Development and Strengthening of the Financial Services Sector, along with related regulations in financial services regulations and other regulations. Regulatory strengthening has been carried out, but this still presents challenges that need to be promptly minimized by the authorities because of the many opportunities arising from carbon market activities in Indonesia.