Carbon Exchange Trading and Monitoring Scheme In Indonesia and New Zealand

Climate change caused by greenhouse gas emissions has led countries like Indonesia and New Zealand to develop carbon trading systems as mechanisms to reduce emissions. This study aims to analyze the differences in the structure and oversight of carbon market regulation between Indonesia and New Zealand, as well as to assess the effectiveness of their implementation. The research uses normative legal methods, combining comparative and statutory approaches. The findings indicate that Indonesia officially launched its carbon exchange in 2023, regulated by the Financial Services Authority (OJK) and implemented through a market-based mechanism. In contrast, New Zealand has operated its Emissions Trading Scheme (NZ ETS) since 2008 using a closed-bid auction system with robust compliance monitoring by the Environmental Protection Authority (EPA). The study compares three key aspects: legal regulation, trading mechanisms, and supervision systems. The results reveal that New Zealand has more advanced obligations for sectors, price setting, and risk-based auditing, while Indonesia faces challenges in regulatory clarity and market participation. The study recommends strengthening Indonesia’s legal framework and reporting mechanisms to enhance the carbon market’s effectiveness and contribute meaningfully to emission reduction targets.