Abstract for: Sustainable Financing Model for Financial Service In (Bank) on Carbon Trading in Indonesia
Climate change is closely associated with carbon emissions. Carbon trading and offset systems are one of the practical methods used to minimize carbon emissions. Implementing carbon pricing requires massive funding allocation, which demands government and private sector sustainable finance policy initiatives that promote Nationally Determined Contributions under the Paris Agreement. This paper aims to develop a sustainable finance modelling in carbon trading planning through the use of system dynamics simulation model. System dynamics simulation model was used to test and evaluate some alternative policies for emission reduction. The original scientific contributions of this research include model formulation and development of sustainable finance policy and carbon trading formulation in the electricity sectors. These findings provide a solid base for further investigation in this field. We emphasize the need for research in developing countries to be more concerned on the sustainable finance mechanism to support carbon trading.