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Author	Asst Prof Dr. iur. Dian Parluhutan
Organisation/Institution	The President University
Country	INDONESIA
Panel	Environmental Law
Title	The Polycentric Governance Approach for Creating ‘Sustainable Ecosystem’ of Carbon Exchange Trading in the Southeast Asian Countries
Abstract	Needless to observe that, the Asian Countries, especially the South East Asian Countries are endeavoring towards the carbon climate neutrality in the forthcoming years pursuant to their respective Nationally Determined Contribution (NDC) under the UNFCCC Paris Agreement. The Indonesian Government as the contracting party of the UNFCCC Paris Agreement has pledged to profoundly reduce its carbon emissions from 31,40 per cent to 43,50 per cent (under the international collaborations scheme). Nevertheless, Indonesia and ASEAN (Association of the South East Asian Nations) Countries have been relied on fossil fuel energy for their economic activities, which cause the envisaged carbon climate neutrality in the South East Asian Countries more challenging to realize in the forthcoming years. Accordingly, Indonesia had been implemented the carbon exchange trading in the traditional financial market and stock exchange one through the following chief regulations: 1) Presidential Regulation No. 98 of 2021 on Carbon Pricing for the Achievement of Nationally Determined Contribution Targets and the Control of Greenhouse Gas Emissions in National Development; 2) Minister of Environment and Forestry Regulation No. 21 of 2022 on Carbon Pricing Procedures; 3) Financial Services Authority Regulations (OJK Regulation) Number 14 of 2023 Regarding Carbon Trading Through Carbon Exchanges in order to reduce carbon emissions from fossil fuels based industries, such as coal mining and conventional power plants. Arguably, the instrument of carbon exchange trading per se is not sufficient and adequate to precisely and holistically curb the increasing volumes of carbon emissions in the South East Asian Countries. The existing achievement of the South East Asian Countries to lower their carbon emissions in amount more than 76, 5 per cents from approximately 1.536 MtCO2 to 330 MtCO2 are accumulation of seven crucial factors, namely: 1) implementation of green growth; 2) national economic development; 3) renewable energy impediments, especially regulations for foreign direct investments (FDI); 4) encouraging trust of customers; 5) clean and renewable energy potentials; 6) the UNFCCC NDC’s impact on the sustainable development; 7) democratization of carbon exchange trading mechanism to enhance justice and equity in the multi-level and multi-actors ecosystem. Since the South East Asian Countries face distinct challenges and obstacles in the envisaged carbon climate neutrality, particularly through creating the sustainable carbon exchange trading, this work proposes the polycentric governance approach, involving multiple centers of decision-making and optimal involvement of decision making actors, in the complex Multi-Level Governance system to integrate the decentralization of administrative authority and network governance manner involving the Government and public, private, and non-governmental organizations for creating ‘sustainable ecosystem’ of carbon exchange trading in the ASEAN Countries optimally.
Biography	Assistant Prof. Dr. iur. Dian Parluhutan, was born in Jakarta in late 1979. Currently, Dr. Parluhutan serves as an Assistant Professor on Energy and Climate Laws at the President University, Indonesia as well as performing the assignment as the Postdoctoral Fellow at the Max Planck Insititut (Max Planck Gesselschaft) for Innovation and Competition, Germany until 2027. Assist. Prof. Dr. Parluhutan obtained his Doktor des Rechts (Dr. iur) from the Fachbereich Rechtswissenschaft, Freie Universität Berlin, Germany under supervision of Professor Dr. Dr. Dr. Dr. Dr. res. Franz Jürgen Säcker. Besides teaching Assit. Prof. Dr. Parluhutan serves as the research assistant to Professor Arinanto, Faculty of Law, Universitas Indonesia on Environmental Law and the resource person for the Indonesian Competition Commission (KPPU). With the scholarship from the German Ministry of Foreign Affairs (Auswärtige Amt), Hanns Seidel Stiftung, from 2007 until 2009, Mr. Parluhutan completed the Magister des Europarechts (LL.M) from the Europa-Institut, Universität des Saarlandes. After serving as the returning legal expert employed by German CIM RF at the Provincial Government of Yogyakarta, Mr. Parluhutan joined the Faculty of Law, Pelita Harapan University (UPH), as a full-time Lecturer in the fields of international public law and international trade law (WTO law). Dr. Parluhutan received doctoral scholarship from the German Ministry of Foreign Affairs (Auswärtige Amt), Hanns Seidel Foundation as well as dissertation scholarship from the Indonesian Ministry of Finance (LPDP). Besides teaching international law and international business law at Universitas Pelita Harapan, Mr. Parluhutan has also published several books and articles both in the national and international journals, such as the Energy Law and the ASEAN Competition Law.