Designing Accountable Carbon Investment Instruments: An Administrative Law Approach to Energy Transition
DOI:
https://doi.org/10.37253/jlpt.v11i1.12357Keywords:
Carbon Investment Instruments, Administrative Law, Energy Transition, Carbon Governance, IndonesiaAbstract
The acceleration of energy transition in Indonesia requires the development of credible and accountable carbon investment instruments capable of mobilizing sustainable financing while supporting national decarbonization targets. However, the effectiveness of carbon markets and other carbon-based investment mechanisms depends not only on economic incentives but also on the quality of administrative governance that ensures legal certainty, transparency, accountability, and institutional coordination. This article examines the design and governance of carbon investment instruments from the perspective of administrative law, focusing on the role of regulatory frameworks and public institutions in supporting Indonesia’s energy transition agenda. Employing a normative juridical approach, the study analyzes relevant legislation, policy instruments, and scholarly literature. The findings reveal that accountable carbon investment instruments require a coherent regulatory design, effective inter-agency coordination, robust monitoring, reporting, and verification (MRV) systems, transparent administrative procedures, and meaningful public participation. The study further demonstrates that administrative law functions as a foundational mechanism for controlling regulatory discretion, preventing regulatory fragmentation, and strengthening institutional accountability in carbon governance. Despite recent regulatory developments, including the introduction of carbon pricing and carbon trading mechanisms, Indonesia continues to face challenges related to institutional overlap, regulatory harmonization, and implementation capacity. Consequently, strengthening administrative governance is essential to ensure that carbon investment instruments contribute effectively to a just energy transition.
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Copyright (c) 2026 Ilham Dwi Rafiqi, Nikmah MentariProgram Magister Hukum Universitas Internasional Batam
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