Amid the dominance of carbon markets in Indonesia’s climate policy, the non-market approach under Article 6.8 of the Paris Agreement offers an opportunity to promote a more just and inclusive energy transition. Unlike carbon trading mechanisms that rely on the buying and selling of emissions, Article 6.8 emphasizes grant-based support, technology transfer, capacity building, and policy collaboration to accelerate climate action without making carbon the primary commodity.
This study highlights how such an approach can strengthen community-based renewable energy development in Indonesia. It can start with micro-hydro, village biogas, and communal solar power plants, solutions that not only reduce emissions but also expand energy access, improve well-being, and strengthen community self-reliance. Amid policy and funding challenges, Article 6.8 opens the door to an energy transition that better prioritizes the needs of local communities.
