Transitioning a Greener Indonesia through Carbon Tax

A Glimpse of Global Challenges and Agreements 

Economic turbulence may return following the COVID-19 pandemic. For more than three years, the global economy has endured significant challenges, with each country continuing its journey towards recovery; however, there have been indications of remarkable resilience emerging from the depths of the COVID-19 crisis. Several efforts have been deployed to achieve economic resilience. Nonetheless, the global market should stay prepared in the face of emerging threats such as climate change, which might affect economic growth. 

The World Economic Global Risk Forum Report (2022) stated that for the last 10 years, climate change has become the 

most threatening risk in the long-term. Scientists discovered that climate change is occurring as a response to global warming caused by human activities over the last 50 to 100 years. Various human activities such as industrialization, deforestation, and high-intensity mobilization have contributed to CO2 emissions which raised the average global temperature by 1.1 degrees Celsius. 

The lack of collaborative efforts to mitigate emissions could lead to a potential increase in Earth’s temperature of up to 5.4 degrees Celsius. In response to this concern, the Paris Agreement was established to set targets aiming to restrict the global temperature rise within the range of 1.5 to 2 degrees Celsius, while also striving to achieve net-zero emissions by 2050.