Climate change and carbon emissions are inseparable issues. Increasing the earth’s
temperature by the disposal of carbon emissions from anthropogenic activities (Industrial,
Energy, LULUCF, Agriculture) has triggered climate change. This cannot be considered
trivial because it gives a cross-border impact. This empirical legal research purpose is to
describe how the implementation of bilateral cooperation between Indonesia and Japan on
carbon trade through joint credit mechanism will be. The research finding has shown that
the reduction of carbon emissions becomes a solution to resolve the climate change
problem. This solution can be reached by cooperation among countries as mandated by
Kyoto Protocol as well as Paris Agreement, and it has already been done by Japan. Japan
made a cooperation with several developing countries, including Indonesia in reducing
carbon emission through a new mechanism called JCM. JCM is a mitigation action
through green technology transfer by giving subsidy. Indonesia has been implementing the
mechanism in several sectors, but so far, it’s not effective yet, because of several barriers,
such as, different perception among government institutions, the absence of incentive by
government, and too many stages in implementing the mechanism. The absence of the
implementing regulation is also a barrier, since it will benefit one party only. Thus, the
JCM implementation in Indonesia is still on the very early stage. It’s therefore suggested
the government make a regulation related with JCM in order to effectively and efficiently
implement the JCM.