The Role of Environmental Accounting and Carbon Emission Disclosure in Supporting Sustainable Transportation in Indonesia

Abstract

Climate change has become a global challenge that is driving various countries to accelerate the transition toward low-carbon development, including in the transportation sector, which is one of the main contributors to greenhouse gas emissions in Indonesia. In this context, environmental accounting and carbon emission disclosure are viewed as important tools for improving environmental management, transparency, and corporate accountability. Therefore, this study aims to analyze the role of these two tools in supporting the realization of a sustainable transportation system in Indonesia. This is a qualitative study employing a literature review of 54 scientific articles published in various reputable academic databases. This study employs content analysis and narrative synthesis to identify key themes, conceptual developments, and relationships between concepts. The results indicate that environmental accounting not only helps companies identify environmental costs and impacts but also promotes operational efficiency and decision-making that is more sustainability-oriented. On the other hand, carbon emission disclosure plays a role in increasing transparency, strengthening accountability to stakeholders, and supporting the implementation of carbon emission reduction policies. The integration of these two practices provides a stronger foundation for the transportation sector to support decarbonization, enhance competitiveness, and contribute to the achievement of the Sustainable Development Goals (SDGs). Therefore, environmental accounting and carbon emission disclosure should be viewed as strategic components in realizing a sustainable transportation system in Indonesia.