Decarbonizing the economy and ensuring a just energy transition is both a middle ground and
a game-changing policy that Indonesia must pursue to achieve two key national targets:
Indonesia’s Golden Vision 2045 and Net Zero Emissions (NZE). To this end, high-quality,
evidence-based research is essential for formulating effective climate policies, particularly for
policymakers.
Another crucial aspect to consider is the evolving geoeconomic and geopolitical tensions. The
situation is further complicated by the rise of unilateral policies, such as trade restrictions and
discriminatory subsidies in key sectors critical to the energy transition. For instance, the
strategic competition between the United States and China in electric vehicle production has
escalated to a new level, with recent tariff increases of up to 100%.
From a climate policy perspective, international trade and investment are both strategic and
complex. On one hand, international trade facilitates the low-carbon economic transition
through technology transfer and economic resilience in times of crisis. However, it also has
negative environmental consequences, such as emissions from transportation and logistics and
the risk of carbon leakage. Current understanding of these issues is largely based on developed
countries, while evidence from developing nations like Indonesia remains scarce.
Moreover, developing countries are increasingly expected to take on more ambitious climate
action. However, with their pressing need for economic growth and greater macroeconomic
and fiscal vulnerabilities compared to developed nations, they require new strategies to
navigate the current geopolitical landscape while ensuring a fair green transition.
In this context, DfD Lab, initiated by CSIS Indonesia, will host the DfD Lab Lecture under the
theme "The Future of Border Carbon Adjustment Policy: How Should Developing
Countries Respond?"