Barriers for Business to Engage in Carbon Trading Through the Indonesian Carbon Exchange: An Analytical Hierarchy Process Approach
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 07
Abstract
This study investigates the barriers faced by businesses in participating in carbon trading through the Indonesia Carbon Exchange (IDXCarbon). Although Indonesia has committed to reduce greenhouse gas emissions by 31.89% with national efforts and 43.20% with international assistance, participation in IDXCarbon is still limited. Using the Analytical Hierarchy Process (AHP) method, this study identifies and ranks barriers based on expert evaluation in four main criteria: Impact on Risk Management and Uncertainty; Impact on Business Operation and Strategy; Impact on Financial and Profitability, and Impact on Regulatory Compliance and Stakeholder Engagement. The main barriers identified were Concern Over Loss of Sustained Revenue; Lack of Company Understanding and Capability; Additional Explicit Costs; Bureaucratic Complexity; Low Level of Transparency; and Limited Trading Volume. The results of this study are expected to guide policymakers and business leaders in improving their effectiveness and participation in carbon trading, thereby contributing to Indonesia’s ambitious emissions reduction targets.
Authors and Affiliations
Petronio Diaz Alif Wibowo,
Keywords
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- EP ID EP741353
- DOI 10.47191/ijcsrr/V7-i7-103
- Views 45
- Downloads 0
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