Company carbon emissions have been a major factor in climate change. Ever
since the Paris Agreement, the world has strengthened its will to combat climate
change. Many nations have developed their own green financing to support corporate
transition towards the green economy. For example, China introduces green insurance
as part of green financing. The purpose is to alleviate some costs of companies to invest
in green projects while reducing the outward foreign direct investment from the
companies in China. On the other hand, Indonesia is one of the top 10 carbon emissions.
Indonesia seems to be struggling to incentivize the mining sector, especially in the coal
mining industry to transition into renewable energy due to its over-reliance on natural
resources to support its economics. There are several approaches taken by countries,
such as green subsidies, green taxation, Green Finance Reform and Innovation Pilot
Zone policy, and others. Meanwhile, Indonesia currently only relies on the Energy
subsidies that come from the government budget. Meanwhile, GDP per capita and
international coal prices could also play a role in incentivizing companies to pursue a
green economy. This research will try to find the effect of government green incentives,
GDP per capita, international coal price, coal mining company stock price, ROA, and
D/E ratio, and find the possibility of Granger cause effect in it. Then analyze the
common size to see the company process in the transition. The company chosen is the
company that has the biggest market cap while also having the availability of data such
as annual reports. The coal mining company chosen also needs to have the commitment
to pursuing green goals. The company market codes that have been chosen were DSSA,
PTBA, ADRO, BYAN, and GEMS. The researcher will also analyze the balance sheet
using common size to undermine the proportion of capital attributed to the green
transition.