Author
Prof Dr. Satya Arinanto
Organisation/Institution
Universitas Indonesia, Faculty of Law
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. Keywords: Carbon Exchange Trading Ecosystem, ASEAN Countries, Polycentric Governance Approach; UNFCCC Paris Agreement
Biography
Professor Dr. Satya Arinanto, S.H., M.H., is the Professor of Constitutional Law at the Faculty of Law, University of Indonesia and the Chairman of the Chair for Good Governance and Human Rights Law Concentration, University of Indonesia, Faculty of Law. Furthermore, Professor Arinanto has been serving the Vice President of Republic of Indonesia as the Special Staff for Legal and Governance Affairs (2002 until January 2025). Since 1991, Prof Arinanto has been teaching at the Faculty of Law, Universitas Indonesia. He holds a Bachelor of Laws degree (S.H.), a Master of Laws degree (M.H.), and a Doctor of Law degree from the Faculty of Law, Universitas Indonesia. Additionally, he completed a non-degree program in Computer Technology at the Bandung Institute of Technology (ITB). From 1992 to 1993, he pursued advanced studies in International Human Rights Law at the University of Notre Dame, Indiana, USA, with a fellowship from The Ford Foundation. He was also a Fulbright Scholar on U.S. Constitution in the United States (May-August 2001). He was awarded the award of Professor in 2005, delivering an inaugural address titled "Politics of National Law Development in the Post-Reform Era". Throughout his career, Professor. Satya Arinanto has held various governmental positions, including Secretary-General of the Central Supervisory Committee for the 1999 General Election, member of the drafting team for legislation at the Department of Justice, and Acting Deputy for Legal Affairs at the Office of the Minister of State for Human Rights. Professor Arinanto was recognized as an Outstanding Young Researcher in Social Sciences, Culture, and Humanities by Universitas Indonesia in 1998 and 20001. He was also named a Model Student at the Faculty of Law and Universitas Indonesia during his undergraduate studies (1989)1. Prof. Satya has received several distinctive awards for his writing, including recognition as a Main Writer in the Asia-Pacific Constitutional Yearbook and for his publications in international scientific journals. Professor Arinanto’s research interests include constitutional law, human rights, legal theory, and the intersection of law and democracy, where Professor Arinanto teaches courses such as Constitutional Court Procedure, Legal Ethics in Human Rights and Governance, Human Rights, and Domestic Human Rights Legislation in Indonesia and ASEAN Countries.
