Developments in global climate governance are increasingly blurring the boundaries between national and international law, as exemplified by the European Union’s Carbon Border Adjustment Mechanism (CBAM). By extending carbon regulatory standards beyond its territorial jurisdiction, CBAM functions as a Transnational Legal Order (TLO) that reshapes state sovereignty and impacts exporting nations, including Indonesia. Using a normative juridical method, this study analyzes relevant legal frameworks through Stephen Krasner’s theory of organized hypocrisy, Saskia Sassen’s concept of denationalization, and Halliday and Shaffer’s TLO framework. The findings reveal that CBAM compels Indonesian national laws and policies to adapt to global climate standards, shifting state sovereignty from autonomous decision-making to adaptive compliance. Furthermore, this study identifies symptoms of a democratic deficit, wherein national legislative processes remain formally sovereign but are substantively dictated by external regulatory pressures. Ultimately, this article concludes that CBAM represents a contemporary form of transnational legal governance that redefines state sovereignty in the era of legal globalization.
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