This project aims to rapidly decarbonize Indonesia's industrial sector by assessing the impact of international carbon tariffs, such as the Carbon Border Adjustment Mechanism (CBAM), and recommending a legal and institutional framework for a decarbonization strategy. Aligned with the European Green Deal (EGD), introduced in December 2019, which guides the EU to carbon neutrality by 2050, the CBAM policy, set for implementation from 2023 to 2025, will affect key products like Indonesia's iron and steel exports. Recognizing the industrial sector's significant CO2 emissions, there is a growing emphasis on sustainable practices for achieving carbon neutrality. The project will enhance understanding of CBAM and similar international carbon tariffs, providing industries and government with essential measures to mitigate the impacts, and fulfil export criteria through energy efficiency initiatives and a gradual shift from fossil fuels to renewable energy.