Civil Liability for Environmental Damage in Indonesia: An Assessment of Carbon Trading Mechanism's Role for Corporate Responsibility Promotion

Authors

  • Diah Ayu Rahmawati Universitas Bhayangkara Surabaya
  • Haryono Universitas Bhayangkara Surabaya
  • Budi Endarto Universitas Wijaya Putra Surabaya
  • Joice Soraya Universitas Wisnu Wardhana Malang
  • Ahmad Hidayat Universitas Bhayangkara Surabaya

DOI:

https://doi.org/10.58812/wslhr.v3i01.1657

Keywords:

Civil Liability, Environmental Damage, Carbon Trading, Corporate Responsibility, Indonesia

Abstract

The paper discusses civil liability for environmental damages in Indonesia, considering the carbon trading mechanisms role in promoting corporate responsibility. Hence, this research has adopted a normative approach, analyzing the existing juridical framework that governs environmental damage and discussing to what extent carbon markets, among other emissions trading systems or carbon taxes, can serve complementary functions of incentivizing corporations toward environmentally responsible behavior. The study identifies loopholes within Indonesia's legal system, particularly for the enforcement of environmental liability laws, and discusses how carbon trading could supplement these deficiencies through financial incentives for reducing emissions. The results show that while the mechanisms of carbon trading hold great potential to promote corporate responsibility, their effectiveness relies on robust market infrastructure, sound systems of monitoring and verification, and integration with existing policies on the environment. The study also finds that to enhance corporate environmental accountability in Indonesia, a combination between legal liability and market-driven incentives is essential.

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Published

2025-01-31

How to Cite

Rahmawati, D. A., Haryono, H., Endarto, B., Soraya, J., & Hidayat, A. (2025). Civil Liability for Environmental Damage in Indonesia: An Assessment of Carbon Trading Mechanism’s Role for Corporate Responsibility Promotion. West Science Law and Human Rights, 3(01), 97–105. https://doi.org/10.58812/wslhr.v3i01.1657

Issue

Vol. 3 No. 01 (2025): West Science Law and Human Rights

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Articles

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Copyright (c) 2025 Diah Ayu Rahmawati, Haryono, Budi Endarto, Joice Soraya, Ahmad Hidayat

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