The Role of Climate Diplomacy in Supporting City Carbon Trading Schemes in Indonesia: A Case Study of East Kalimantan and Jakarta

Abstract

Climate change is a global challenge that demands cross-border cooperation through an inclusive approach. Indonesia's commitment to the Paris Agreement and its Nationally Determined Contributions (NDC) targets is realised through Presidential Regulation No. 98 of 2021 concerning the Economic Value of Carbon, which regulates the implementation of carbon trading schemes as a market-based emission reduction instrument. This study aims to examine the role of Indonesian climate diplomacy in supporting the implementation of carbon trading at the local level, using case studies in Jakarta and East Kalimantan, two regions with distinct characteristics and policy approaches. The research employed a qualitative approach with a comparative case study method, and data was collected through analysis of national and international policy documents. The results show that Jakarta focuses on the energy and transportation sectors, while East Kalimantan emphasizes the forestry and energy transition sectors. Conversely, Indonesia's climate diplomacy affirms its strategic position on the global stage by promoting market-based approaches, climate justice, and equitable global partnerships. These findings demonstrate a close relationship between local policies and Indonesia's foreign diplomacy strategy, with regions playing a crucial role in supporting international narratives and commitments. This study concludes that the success of carbon trading schemes as an inclusive environmental protection instrument depends on the synergy between climate diplomacy, national regulations, and local capacity.