Economics and Business
Quarterly Reviews
ISSN 2775-9237 (Online)
Published: 07 December 2024
Identification and Implementation of Carbon Emission Disclosures and Subsidiaries in Indonesia in Comparison to Brazil and Congo: An Overview Study
Evi Aryati Arbay, D. Agung Krisprimandoyo, Rudi Sukandar
LSPR Institute of Communication & Business (Indonesia), Ciputra University (Indonesia)
Download Full-Text Pdf
10.31014/aior.1992.07.04.633
Pages: 230-242
Keywords: Carbon Emission, Carbon Emission Disclosure, Carbon Subsidiary
Abstract
Objectives: The quantity of CO2 emissions that combustion energy sources in power plants, cars, industry, business sectors, households, and other sectors emit into the atmosphere would influence global warming. Therefore, reducing global warming may be achieved by energy efficiency technology and low-carbon energy sources. By examining how MRV, a ground-breaking REDD+ technology from Indonesia, Brazil, and Congo Governance, transformed forested landscapes into carbon domain that could be observed and controlled via the use of data-intensive mapping and techniques model. Theoretical Framework: To reduce deforestation, REDD+ was initially designed to be a scheme in which rich countries would compensate poor countries with trees (maybe through carbon markets). However, there have been questions over whether REDD+ will lead to significant reductions in emissions. Carbon reductions in the forest sector are becoming increasingly important for reducing emissions and meeting the NDC. Method: This study looks at literature reviews as a research method in addition to giving an overview of the many types of reviews and some standards for conducting and assessing literature review articles regarding carbon emission declarations and subsidiaries in Congo, Brazil, and Indonesia might be used. Result and Discussion: This study should be identified and analysed as follows: (i) Districts and regionals should be given incentives to produce or harvest more timber instead of disincentives from Nation Governance; (ii) State Forest mining fees should be increased to fully defray the costs of reclamation and rehabilitation of areas mined; (iii) Tightening technical requirements for underground mining in protection forests would limit the number of mining permits that local governments could be granted. Research Implications: This study achieved sustainable and equitable growth for everybody, there will need to be greater global collaboration on trade and climate change about carbon emission disclosures and subsidiaries. Originality/Value: This study identified and analysed carbon emission disclosures and subsidiaries in Indonesia, Brazil, and Congo also how to imply the regulations among those country.
References
Achille, L. S., Zhang K. B., & Anoma, C. J. K. (2021) Dynamics of deforestation and degradation of forests in the democratic republic of Congo from 1990 to 2018. Open Journal of Ecology, 11, 451-461. Retrieved from https://doi.org/10.4236/oje.2021.115029
Agamben, G. (1998). Homo Sacer: Sovereign power and bare life. Stanford University Press
Ali, A. Z., Rahman, M. S., & Raihan, A. (2022). Soil carbon sequestration in agroforestry systems as a mitigation strategy of climate change: A case study from Dinajpur, Bangladesh. Advances in Environmental and Engineering Research, 3(4), 1–15. Retrieved fromhttp://dx.doi.org/10.21926/aeer.2204056
Allam, G.A., & Diyanty, V. (2020). Determinants of carbon emission disclosure. Journal of Economics, Business, & Accountancy Ventura, 22(3), 333–46. Retrieved from https://doi.org/10.14414/jebav.v22i3.1207
Andrian, T, & Kevin. (2021). Determinant factors of carbon emission disclosure in Indonesia. Journal of Southwest Jiaotong University, 56(1), 346-357. Retrieved from https://doi.org/10.35741/issn.0258-2724.56.1.32
Apergis, N., Christou, C., & Gupta, R. (2017), Are there environmental Kuznets Curves for US state-level CO2 emissions? Renewable and Sustainable Energy Reviews, 69, 551–558.
Assis, T. O., Aguiar, A. P. D., Randow, C. V., Gomes, D. M. D. P., Kury, J. N., Ometto, J. P., & Nobre, A. C. (2020). CO2 emissions from forest degradation in Brazilian Amazon. Environmental Research Letters, 15(10). Retrieved from https://doi.org/10.1088/1748-9326/ab9cfc
Astuti, R., & McGregor, A. (2015). Responding to the green economy: How REDD+ and the One Map Initiative are transforming forest governance in Indonesia. Third World Quarterly, 36, 2273–2293.
Azar, J., Duro, M., Kadach, I., & Ormazabal, G. (2021). The big three and corporate carbon emissions around the world. Journal of Financial Economics, 142(2), 674–96. Retrieved from https://doi.org/10.1016/j.jfineco.2021.05.007
Basuki, I., Adinugroho, W. C., Utomo, N. A., Syaugi, A., Tryanto, D. H., Krisnawati, H., Cook-Patton, S. C., & Novita, N. (2022). Reforestation opportunities in Indonesia: Mitigating climate change and achieving Sustainable Development Goals. Forests, 13. Retrieved fromhttps://doi.org/10.3390/f13030447
Begum, R. A., Sohag, K., Abdullah, S. M. S., & Jaafar, M. (2015). CO2 Emissions, energy consumption, economic and population growth in Malaysia, Renewable and Sustainable Energy Reviews, 41, 594–601.
Boer, H. J. (2020). The biopolitics of carbon accounting in Indonesia’s forests. EPC: Politics and Space, 38(1), 174–192. Retrieved from https://doi.org/10.1177/2399654419852970
Brearley, F. Q., Adinugroho, W. C., Cámara-Leret, R., Krisnawati, H., Ledo, A., Qie, L., Smith, T. E. L., Aini, F., Garnier, F., Lestari, N. S., Mansur, M., Murdjoko, A., Oktarita, S., Soraya, E., Tata, H. L., Tiryana, T., Trethowan, L. A., Wheeler, C. E., Abdullah, M., Aswandi., Buckley, B. J. W., Cantarello, E., Dunggio, I., Gunawan, H., Heatubun, C. D., Arini, D. I. D., Istomo., Komar, T. E., Kuswandi, R., Mutaqien, Z., Pangala, S. R., Ramadhanil., Prayoto., Puspanti, A., Qirom, M. A., Rozak, A. H., Sadili, A., Samsoedin, I., Sulistyawati, E., Sundari, S., Sutomo., Tampubolon A. P., & Webb, C. O. (2019). Opportunities and challenges for an Indonesian Forest Monitoring Network. Annals of Forest Science, 76(2). Retrieved from https://doi.org/10.1007/s13595-019-0840-0
Cahyono, W. E., Parikesit., Joy, B., Setyawati, W., & Mahdi, R. (2023). Projection of CO2emissions in Indonesia. Materials Today: Proceedings, 63, 438–444.
Choi, B. B., Lee, D., & Psaros, J. (2013). An analysis of Australian company carbon emission disclosures. Pacific Accounting Review, 25(1), 58–79.
Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry & research design: Choosing among five approaches. SAGE Publication Inc.
Daromes, F. E. (2020). Carbon emissions disclosure as mechanism to increase environmental performance and control of idiosyncratic risk: How they impact firm value. Indonesian Journal of Sustainability Accounting and Management, 4 (2), 227–40. Retrieved from https://doi.org/10.28992/ijsam.v4i2.299
Dirgantara, P. (2022). Reflecting on REDD+: Challenges towards Indonesia’s carbon pricing. Earth and Environmental Science, 1105, 1–13.
Evana, E., & Lindrianasari, L. (2021). R&D intensity, industrial sensitivity, and carbon emissions disclosure in Indonesia. Indonesian Journal of Sustainability Accounting and Management, 5(1), 103–112. Retrieved from https://doi.org/10.28992/ijsam.v5i1.341
FAO (2016). Global forest resources assessment 2015. Food and Agriculture Organization of the United Nations.
Fasihi, M., Efimova, O., & Breyer, C. (2019). Techno-economic assessment of CO2 direct air capture plants. Journal of Cleaner Production, 224, 957–980.
Fischer, H. W., Chhatre, A., Duddu, A., Pradhan, N., & Agrawai, A. (2023). Community forest governance and synergies among carbon, biodiversity and livelihoods. Nature Climate Change, 13, 1340–1347.
Fosten, J., Morley, B., & Taylor, T. (2012). Dynamic misspecification in the environmental Kuznets Curve: Evidence from CO2 and SO2emissions in the United Kingdom. Ecological Economics, 76, 25–33.
Fulton, L., Mejia, A., Arioli, M., Dematera, K., & Lah, O. (2017). Climate change mitigation pathways for Southeast Asia: CO2 emissions reduction policies for the energy and transport sectors. Sustainability (Switzerland), 9(7). Retrieved from https://doi.org/10.3390/su9071160
Gill, A. R., Viswanathan, K. K., & Hassan, S. (2017). A test of Environmental Kuznets Curve (EKC) for carbon emission and potential of renewable energy to reduce greenhouses gases (GHG) in Malaysia. Environment, Development and Sustainability, 1–12.
Goetz, S. J., et al. (2015). Mapping and monitoring carbon stocks with satellite observations: A comparison of methods. Carbon Balance and Management, 10(1), 7
Grassi, G., House, J., Dentener, F., Federici, S., den Elzen, M., & Penman, J. (2017). The key role of forests in meeting climate targets requires science for credible mitigation. Nature & Climate Change, 7, 220–226.
Groom, B., Palmer, C., & Sileci, L. (2022). Carbon emissions reductions from Indonesia’s moratorium on forest concessions are cost-effective yet contribute little to Paris Pledges. PNAS, 110(5), 1–10. Retrieved from https://doi.org/10.1073/pnas.2102613119
Gupta, A., & Mason, M. (2016). Transparency in global environmental governance: Critical perspectives. MIT Press
Hapsari., Anindya, C. & Prasetyo, A. B. (2020). Analyze factors that affect carbon emission disclosure: Case study in non-financial firms listed on Indonesia Stock Exchange in 2014-2016. Accounting Analysis Journal, 9(6), 74–80. Retrieved from https://doi.org/10.15294/aaj.v9i2.38262
Heinrich, V. H. A., Dalagnol, R., Cassol, H. L. G., Rosan, T. M., de Almeida, C. T., Silva Jr., C. H. L., Campanharo, W. A., House, J. I., Sitch, S., Hales, T. C., Adami, M., Anderson, L. O., & Aragão, L. E. O. C. (2021). large carbon sink potential of secondary forests in the Brazilian Amazon to mitigate climate change. Nature Communications, 12(1), 1–11. Retrieved from https://doi.org/10.1038/s41467-021-22050-1
Houghton, R. A., & Nassikas, A. A. (2017). Global and regional fluxes of carbon from land use and land cover change 1850-2015. Global Biogeochemical Cycles, 31(3), 456-472.
Indriyani, L., Bana, S., Yasin, A., Sudia, L. B., Kahirun., Midi, L. O., & Hardin. (2020). The potential of blue carbon stocks and carbon dioxide absorption in mangrove forests to support low carbon emission development in Southeast Sulawesi Province, Indonesia. International Journal of Advance Science Engineering Information Technology, 10(6), 2526–2535.
INPE. (2021). Monitoring deforestation of the Brazilian Amazon forest by satellite. Retrieved fromhttp://www.obt.inpe.br/OBT/assuntos/programas/amazonia/prodes
Jebli, M. B., Youssef, S. B., & Ozturk, I. (2015). The Role of renewable energy consumption and trade: Environmental Kuznets Curve analysis for Sub-Saharan Africa Countries. African Development Review, 27(3), 288–300.
Jiang, X., Albright, R., Creecy, E., Li, K.-F., Liang, M.-C., Newman, S., Wang, X., Gamalathge, T. D. K., & Yung, Y. L. (2023). Congo Basin rainforest is a net carbon source during the dry season. Earth and Space Science, 10, 1–12. Retrieved fromhttps://doi.org/10.1029/2022EA002644
Le Quéré, C., Jackson, R. B., Jones, M. W., Smith, A. J. P., Abernethy, S., Andrew, R. M., De-Gol, A. J., Willis, D. R., Shan, Y., Canadell, J. G., Friedlingstein, P., Creutzig, F., & Peters, G. P. (2020). temporary reduction in daily global CO2 emissions during the COVID-19 forced confinement. Nature Climate Change, 10(7), 647–653. Retrieved fromhttps://doi.org/10.1038/s41558-020-0797-x
Li, Y., Brando, P. M., Morton, D. C., Lawrence, D. M., Yang, H., & Randerson, J. T. (2022). deforestation-induced climate change reduces carbon storage in remaining tropical forests. Nature Communications, 13. Retrieved from https://doi.org/10.1038/s41467-022-29601-0
Lin, B., Omoju, O. E., & Okonkwo, J. U. (2015). Impact of industrialisation on CO2 emissions in Nigeria. Renewable and Sustainable Energy Reviews, 52, 1228–1239.
Mudiyarso, D., Krisnawati, H., Adinugroho, W. C., & Sasmito, S. D. (2018). Dynamics of carbon and CO2 removals by Brazilian forest plantations during 1990–2016. Carbon Balance Manage, 13(20), 1–12. Retrieved from https://doi.org/10.1186/s13021-018-0106-4
Nkengfack, H., & Fotio, H. K. (2019). Energy consumption, economic growth and carbon emissions: Evidence from the top three emitters in Africa. Modern Economy, 10, 52–71.
Nkengfack, H., & Fotio, H. K. (2020). Anthropogenic CO2emission and climate change in the Congo Basin Countries. The European Journal of Comparative Economics, 17(2), 205–227.
Pan, Y., Birdsey, R., Fang, J., Houghton, R., Kauppi, P., Kurz, W., Phillips, O., Shvidenko, A., Lewis, S., Canadell, J., Ciais, P., Jackson, R., Pacala, S., McGuire, A., Piao, S., Rautiainen, A., Sitch, S., & Hayes, D. (2011). A large and persistent carbon sink in the world's forests. Science, 333(6045), 988-993.
Piabuo, S. M., Minang, P. A., Tieguhong, C. J., Foundjem-Tita, D., & Nghobuoche, F. (2021). Illegal logging, governance effectiveness and carbondioxide emission in the timber‑producing countries of Congo Basin and Asia. Environment, Development and Sustainability, 23, 14176–14196. Retrieved fromhttps://doi.org/10.1007/s10668-021-01257-8
Raihan, A. (2023). Economic growth and carbon emission nexus: The function of tourism in Brazil. Journal of Economic Statistics, 1(2), 68–80.
Richards, P., Arima, E., Vanwey, L., Cohn, A., & Bhattarai, N. (2017). Are Brazil’s deforesters avoiding detection? Conservation Letters, 10(4), 469–475. Retrieved from https://doi.org/10.1111/conl.12310
Robertson, M. M. (2012). Measurement and alienation: Making a world of ecosystem services. Transactions of the Institute of British Geographers, 37(3), 386-401.
Rozak, A. H., & Junaedi, D. I. (2022). Carbon emission from biodiversity research conferences in Indonesia. Journal of Environment and Sustainability, 6(2), 112–120.
Setiawan, P., & Iswati, S. (2019). Carbon emissions disclosure, environmental management system, and environmental performance: Evidence from the plantation industries in Indonesia. Indonesian Journal of Sustainability Accounting and Management, 3(2). Retrieved from https://doi.org/10.28992/ijsam.v3i2.99
Skutsch, M., & McCall, M. (2010). Reassessing REDD+: Governance, markets and the hype cycle. Climatic Change, 100(3-4), 395-402.
Song, X.-P., Huang, C., Saatchi, S. S., Hansen, M. C., & Townshend, J. R. (2015). Annual carbon emissions from deforestation in the Amazon Basin between 2000 and 2010. PLoS ONE, 10(5). Retrieved from https://doi.org/10.1371/journal.pone.0126754
Tacconi, L., & Muttaqin, M. Z. (2019). Reducing emissions from land use change in Indonesia: An overview. Forest Policy and Economics, 108. Retrieved from https://doi.org/10.1016/j.forpol.2019.101979
Trilestari, D. I., & Murwanto, H. (2022). Impact of industry type, company size, profitability and leverage to carbon emission disclosure. International Journal of Social and Management Studies, 1(4), 53–66. Retrieved fromhttps://doi.org/10.5555/ijosmas.v3i4.213
Verchenkova, A., Gannon, K. E., & Patrick, C. (2019). Governance of carbon emission policy: A case study of South Africa. London: Grantham Research Institute on Carbon Emission and the Environment and Centre for Carbon Emission Economics and Policy. London School of Economics and Political Science.
Wang, C., Li, X., Min, Q., Wang, W., Sardans, J., Zeng, C., Tong, C., &Peñuelas, J. (2019). Responses of greenhouse-gas emissions to land-use change from rice to jasmine production in subtropical China. Atmospheric Environment, 201, 391–401.
Wiltshire, A. J., von Randow, C., Rosan, T. M., Tejada, G., & Castro, A. A. (2022). Understanding the role of land-use emissions in achieving the Brazilian nationally determined contribution to mitigate climate change. Climate Resilience and Sustainability, 31(1), 1–19.
World Bank. (2021). State and trends of carbon pricing 2021. Washington, DC: World Bank.
Xu, L., Saatchi, S. S., Shapiro, A., Meyer, V., Ferraz, A., Yang, Y., Bastin, J. F., Banks, N., Boeckx, P., Verbeeck, H., Lewis, S. L., Muanza, E. T., Bongwele, E., Kayembe, F., Mbenza, D., Kalau, L., Mukendi, F., Ilunga, F., & Ebuta, D. (2017). Spatial distribution of carbon stored in forests of the Democratic Republic of Congo. Scientific Reports, 7, 1–12.
Yu, L., Wen, J., Chang, C. Y., Frankenberg, C., & Sun, Y. (2018). High-resolution global contiguous SIF of OCO2. Geophysical Research Letters, 46(3), 1449–1458. Retrieved from https://doi.org/10.1029/2018gl081109
Yuliandhari, W. S., & Ayustyara, D. (2023). The factors can be affecting to carbon emission disclosure: Study on energy sector companies listed on the Indonesia Stock Exchange in 2019-2021. Journal of Humanities and Social Studies, 7(2), 609–615.
Zarin, D. J., Harris, N. L., Baccini, A., Aksenov, D., Hansen, M. C., Azevedo-Ramos, C., Azevedo, T., Margono, B. A., Alencar, A. C., Gabris, C., Allegretti, A., Potapov, P., Farina, M., Walker, W. S., Shevade, V. S., Loboda, T. V., Turubanova, S., Tyukavina, A. (2016). Can carbon emissions from tropical deforestation drop by 50% in 5 years? Global Change Biology, 22, 1336–1347.