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Carbon pricing: Policy option to support Indonesia’s climate target
Indonesia submitted the updated NDC and the Long-Term Strategy on Low Carbon and Climate Resilience 2050 (LTS-LCCR 2050) documents to the UNFCC. Indonesia set its vision to achieving net zero emission no later than 2060.
Carbon pricing considered as the most effective alternative from economic perspective. Carbon pricing is increasingly recognized as important source of funding as it can generated the government revenue that can also be used as incentives for research and development into green technology, help vulnerable communities adapt to the effects of climate change, or manage the economic impacts of the transition to a low-carbon economy. Thus, is carbon pricing the right policy option for Indonesia’s climate mitigation? Can it be effectively implemented to achieve net zero emission by 2060 or even earlier?
This paper aims at providing insight into how carbon pricing could be a perfect doable set of alternative strategies to achieve Indonesia’s climate target. Using moonshot thinking, it will explain milestone of policies, strategies and actions taken to meeting the goals of net zero. This paper will also provide policy recommendations for Indonesia to implement a well-designed carbon pricing system that fits the interests and to support Indonesia’s NDC target by 2030 and net zero emission by 2060 while also providing social and economic co-benefits.
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