The Role of Green Accounting Through the Implementation of Carbon Taxes as an Instrument for Climate Change Mitigation in Indonesia

Abstract

This study aims to analyze the application of green accounting and carbon tax in the context of climate change in Indonesia. The integration of green accounting with carbon taxes is a relevant instrument for reducing greenhouse gas emissions and encouraging companies to shift to cleaner energy sources. The research method is an analysis of the literature related to green accounting and carbon tax in Indonesia. Data and literature were collected to identify green accounting practices in Indonesia, their potential and impact on financial and environmental performance. The results show that several companies have adopted green accounting practices, such as measuring carbon emissions and reporting environmental performance. However, wider and consistent implementation is needed across all sectors. Carbon tax policies in Indonesia are also still in the development stage, with some sectors already subject to carbon taxes. However, there is a need to strengthen the policy framework, including increased clarity on carbon tax rates and the use of revenues from these taxes to support environmental projects. It can be concluded that the application of green accounting and carbon tax in Indonesia is still in its early stages, with several efforts that have been made.

Keywords: Climate Change, Carbon Tax, Green Accounting