Legal Review of the Implementation of Sustainable Business Principles in the Implementation Models of Carbon Trading in Indonesian Upstream Oil and Gas Industry

The Upstream Oil and Gas (O&G) Industry faces various challenges in the national development revolution based on Sustainable Development and Green Economy in Indonesia. The Government of Indonesia has formulated a Carbon Economic Value (NEK) policy as one form of environmental economic policy instrument that can be utilized by Upstream O&G Companies. This policy can be implemented through the implementation of Carbon Trading. This study aims to determine the model for implementing Carbon Trading in the Upstream O&G Industry and to examine it based on the principles of Sustainable Business. The research was conducted using a normative legal method with a regulatory-legal approach and a conceptual approach that resulted in a legal analysis. The results of the study stated that the implementation of Carbon Trading in the Upstream O&G Industry can be carried out through the Emission Offset mechanism and is related to Carbon Capture and Storage (CCS) business activities and Carbon Capture, Utilization and Storage (CCUS) business activities. In addition, the implementation of Carbon Trading can realize the implementation of Sustainable Business principles in line with the Triple Bottom Line (TBL) and Environmental, Social, and Governance (ESG) approaches in business activities carried out by Upstream O&G Companies.