Rechtsnormen: Journal of Law
Vol. 3 No. 5 (2025)

Effectiveness of Carbon Tax as a Legal Norm for Industrial Decarbonization: A Critical Policy Review in Indonesia

Som Chai (Thammasat University)
Napat Chai (A Mahidol University)
Ton Kiat (Assumption University)
Andi Andi (Universitas Sultan Ageng Tirtayasa)



Article Info

Publish Date
07 Oct 2025

Abstract

Background. Industrial activities are a major contributor to greenhouse gas emissions in Indonesia, posing significant challenges for environmental sustainability and climate policy. Carbon taxation has emerged globally as a legal and economic instrument to incentivize industrial decarbonization, but its effectiveness within the Indonesian regulatory and economic context remains underexplored. Purpose. Understanding the strengths, limitations, and implementation challenges of carbon tax as a legal norm is critical for designing policies that achieve emissions reduction without undermining industrial competitiveness.   Method. Findings indicate that while carbon taxation has potential to drive emission reductions, challenges such as policy ambiguity, compliance enforcement, and economic impacts on industries limit its current effectiveness. Results. Findings indicate that while carbon taxation has potential to drive emission reductions, challenges such as policy ambiguity, compliance enforcement, and economic impacts on industries limit its current effectiveness.   Conclusion. The study concludes that successful implementation requires a coherent legal framework, transparent regulatory mechanisms, and integration with complementary environmental policies. Strengthening institutional capacity and ensuring stakeholder engagement are essential for maximizing the efficacy of carbon tax as a tool for industrial decarbonization.

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Journal Info

Abbrev

rjl

Publisher

Subject

Description

Rechtsnormen: Journal of Law is a leading international journal focused on the global exchange of knowledge in Law as well as advancing research and practice across law disciplines. The journal provides a forum for articles reporting on original research, systematic and scholarly reviews focused on ...