Promoting a sustainable green economy is a multifaceted endeavor that requires collaboration across disciplines and sectors. Each country adopts distinct strategies to advance green economy policies.
On Thursday (Feb. 15), the Faculty of Law at UGM convened an international seminar titled “Achieving Sustainability through Green Economy Policies” in partnership with Durham University and experts from The World Bank.
A Durham University expert, Dr. Adebola Adeyemi, shed light on the UK’s challenges in formulating green economy policies. As a country with four distinct seasons, the UK demands a higher energy supply than tropical regions.
The nation’s dependence on energy and minerals necessitates alignment with the global mineral demand regulated by the “Critical Mineral Strategy.” This strategy aims to manage the export of vital minerals like lithium, graphite, cobalt, and nickel to ensure availability for domestic needs.
“The UK has long been a global mineral supplier. With the rise in demand for battery technology due to net zero emission policies, mineral demand has surged. Given our reliance on this energy source in the UK, a strategy was devised to meet domestic needs while ensuring continued business operations,” elaborated Dr. Adeyemi.
However, the current supply of mineral resources falls short of meeting the escalating market demand, resulting in uncontrollable mineral prices in the global market.
In contrast to the UK, Indonesia has implemented green economy policies through sustainable finance initiatives.
These policies, governed by principles that guide long-term investment endeavors, research and development, and sustainable financial strategies, are championed by the Indonesian Financial Services Authority (OJK).
Professor Paripurna P. Sugarda from the UGM Faculty of Law, specializing in business law, elaborated on this.
“OJK has laid out clear regulations for the financial industry to uphold sustainability principles. How do we ensure compliance? OJK adopts a three-pronged approach,” Professor Sugarda said.
“Non-compliance with sustainability regulations can lead to penalties and sanctions imposed by OJK. All activities are subject to OJK oversight, and institutions must report their activities in alignment with sustainable policies.”
This approach not only regulates domestic financial policies but also fosters green economy promotion on the international stage.
Indonesia has made significant strides in developing Environmental, Social, and Governance (ESG) standards and establishing a robust, sustainable financial ecosystem, as Dr. Satoshi Ishihara, Senior Social Development Specialist at The World Bank, outlined.
“Indonesia has published 10 ESG standards that are the program’s focus, which is a good start. Most of these policies focus on infrastructure and international forums for sustainability,” remarked Dr. Ishihara.
This seminar, part of the 78th-anniversary celebrations of the UGM Faculty of Law, aims to bolster collective commitment towards sustainable development in line with SDG 17, emphasizing partnerships to achieve common objectives.
The collaboration between institutions and nations is envisioned to catalyze concerted efforts in fostering education and advancing sustainable goals.
Author: Tasya