A Comprehensive Review of Green Economy Practices: Policies, Innovations, and Local Insights for Sustainable Development

Abstract

The transition to a green economy offers a holistic solution to address global challenges such as climate change, resource depletion, and socio-economic inequalities. This review, synthesizing findings from 30 unique studies retrieved through the Garuda Database, explores Indonesia's contributions and global perspectives on advancing green economy initiatives. Local innovations, including waste banks, aquaponics, and sustainable dairy farming, exemplify the integration of traditional wisdom with modern sustainability practices. These initiatives have successfully generated socio-economic benefits while addressing environmental challenges at the grassroots level. National strategies, such as Indonesia's carbon neutrality roadmap and renewable energy policies, underscore the country’s ambitious efforts to align with global sustainability goals. However, implementation barriers, including regulatory fragmentation and limited infrastructure development, hinder progress.

Sectoral contributions are pivotal in driving the green economy, with waste management, renewable energy, and finance playing critical roles. Waste banks in Indonesia demonstrate the potential for recycling to generate economic value, while renewable energy advancements in solar and geothermal technologies emphasize the importance of reducing carbon emissions and enhancing energy security. Furthermore, financial mechanisms like green sukuk have facilitated investments in sustainable projects, aligning ethical investment principles with environmental objectives.

The review also highlights global comparisons, such as the European Union’s Green Deal and China’s renewable energy leadership, which provide valuable lessons for scaling green economy initiatives in Indonesia. By addressing implementation gaps and leveraging opportunities for international collaboration and green job creation, Indonesia can position itself as a regional leader in sustainable development. This study underscores the need for coordinated efforts to combine local innovations with global best practices to achieve a sustainable and inclusive future.