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Abstract

Introduction to the Problem: The implementation of GHG emission offset schemes in the forestry sector carries inherent uncertainties due to its highly dynamic nature. These uncertainties may lead to greenwashing, driven by misinformation in data and the complex characteristics of the forestry sector.
Purpose/Study Objectives: This study aims to provide insights into carbon trading and to serve as a reference for policymakers in responding to the potential risks of greenwashing in carbon trading through GHG emission offset schemes.
Novelty: This research identifies two primary issues contributing to the potential for greenwashing in carbon trading through GHG emission offset schemes in the forestry sector: manipulated claims and double counting.
Methodology: This research adopts a normative juridical approach, focusing on the analysis of laws and regulations, particularly those governing carbon trading in the forestry sector through GHG emission offset schemes. Results/Findings: The mechanism for carbon trading through GHG emission offset schemes in Indonesia’s forestry sector is regulated under Minister of Environment and Forestry Regulation Number 7 of 2023 regarding the Procedures for Carbon Trading in the Forestry Sector. The key issues giving rise to greenwashing potential in this context are manipulated claims during the planning and preparation of the Emission Reduction Result Document (DRAM), and double counting of emission reductions.

Keywords

carbon trading greenwashing Greenhouse Gas emission offset

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How to Cite
Drajati, N. S., Odilla, I. F., & Berlianty, A. N. (2025). The Potential for Greenwashing in Greenhouse Gas (GHG) Emission Offset Schemes in Indonesia’s Forestry Sector. Jurnal Bina Mulia Hukum, 10(1), 33-49. https://doi.org/10.24198/jbmh.v10i1.1947
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