<![CDATA[Carbon taxation is recognized as an economic instrument for internalizing the negative externalities of greenhouse gas emissions while supporting the transition to a low carbon economy. This study examines carbon tax revenue allocation across 31 countries and explores its implementation potential in Indonesia. The countries were purposively selected based on the existence of an operational carbon tax and the availability of verifiable information on revenue allocation as of 2025. The study employs a qualitative approach using descriptive methods and secondary data sourced from academic literature and public policy documents. The findings reveal that among 31 cases allocated at least part of their carbon-tax revenues to climate-related purposes. However, the allocation mechanisms varied considerably across countries. Indonesia has established a legal basis for carbon taxation, but its implementation and revenue allocation arrangements remain under development. The findings indicate that the effectiveness of carbon tax policy depends greatly on the clarity of its design, revenue allocation schemes, and the accompanying social protection mechanisms. Policymakers are encouraged to prioritize the strengthening of earmarking regulations, cross sectoral integration, and institutional capacity building to ensure that carbon tax revenues are effectively utilized for climate mitigation and sustainable development.]]>
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