Published date: Oct 30 2023

Journal Title: KnE Social Sciences

Issue title: 5th Social and Humaniora Research Symposium (5th SoRes)

Pages: 556–564

DOI: 10.18502/kss.v8i18.14257

Atih Rohaeti DariahUniversitas Islam Bandung, Bandung, Indonesia

Asni Mustika Raniasnimustika@unisba.ac.idUniversitas Islam Bandung, Bandung, Indonesia

Popon SrisusilawatiUniversitas Islam Bandung, Bandung, Indonesia

The green taxonomy plays a central role in driving developments in sustainable finance, leading to the achievement of sustainable production goals in various countries. While some countries have already adopted a green taxonomy, others are in the process of developing one. This study aims to identify the countries that have implemented sustainable finance in different forms and to conduct a content analysis to compare and identify gaps in their green taxonomy implementations. The research reveals that several countries worldwide have embraced the green taxonomy as a crucial tool in advancing sustainable finance and promoting sustainable production. These countries generally have specific environmental goals, establish green finance-related institutional arrangements and financial products, and compile lists of economic sectors and activities covered under the green taxonomy. Key sectors addressed by the green taxonomy include agriculture, energy, manufacturing industries, and transportation. However, each country still maintains its unique approach to environmental protection efforts through the use of green taxonomy tools.

Keywords: green taxonomy, sustainable finance, sustainable production

[1] Le Blanc D. Towards integration at last? The sustainable development goals as a network of targets. Sustainable Development (Bradford). 2015;23(3):176–187.

[2] Hepburn C, Stern N. “Driving investments toward sustainable economic growth in the People’s Republic of China,” 2019. https://doi.org/10.22617/WPS190459-2.

[3] Dariah AR, Abdullah R, Hidayat AR, Matahir F. Sustainable economic sectors in Indonesia and Brunei Darussalam. Sustainability (Basel). 2022;14(5):1–20.

[4] Kharchenko V, Illiashenko O. “Concepts of green IT engineering: Taxonomy, principles and implementation,” Green IT Engineering: Concepts. Models, Complex Systems Architectures; 2017:3–19.

[5] Bradley P. An institutional economics framework to explore sustainable production and consumption. Sustainable Production and Consumption. 2021;27:1317–1339.

[6] Rani AM, Yuliawati T, Agustiningsih DD. “How to change MSME’s Paradigm in applying green industry principles?” Proceedings of the Social and Humaniora Research Symposium (SoRes 2018), 2019. https://doi.org/10.2991/sores-18.2019.56.

[7] Debbarma J, Choi Y. A taxonomy of green governance: A qualitative and quantitative analysis towards sustainable development. Sustain Cities Soc. 2022;79:103693.

[8] Hazarika N, Zhang X. Evolving theories of eco-innovation: A systematic review. Sustainable Production and Consumption. 2019 Jul;19:64–78.

[9] Network for Greening the Financial System, “Enhancing market trasnparency in green and transition,” 2022.

[10] World Bank Group, “Developing a National Green Taxonomy: A World Bank Guide,” 2020.

[11] Ehlers T, Gao D, Packer F. A taxonomy of sustainable finance taxonomies. SSRN. 2021;(118): https://doi.org/10.2139/ssrn.3945635.

[12] Busch C et al., “Content Analysis,” The WAC Clearinghouse.

[13] European Parliament and the Council. Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088. Official Journal of the European Union. 2020;63:13–43.

[14] Gallagher E, Bancilhon C, Berruti G. What you should know about the EU Taxonomy. GreenBiz; 2021.

[15] Climate Bond Initiative, “Climate Bonds Taxonomy,” 2021.

[16] OECD, “Industrial upgrading for green growth in China,” 2017.

[17] Yuan Q, Yang D, Yang F, Luken R, Saieed A, Wang K. Green industry development in China: an index based assessment from perspectives of both current performance and historical effort. Journal of Cleaner Production. 2020;250:119457.

[18] Shen Y, Faure M. Green building in China. International Environmental Agreements: Politics, Law and Economics. 2021;21(2):183–199.

[19] National Business Initiative, “Developing a national green taxonomy: Project briefing report,” 2020.

[20] Bank Negara Malaysia, “Climate Change and Principle-based Taxonomy,” 2021.

[21] Bank Negara Malaysia, “Climate Change and Principle-based Taxonomy,” 2021.

[22] ASEAN Taxonomy Board, “ASEAN Taxonomy for Sustainable Finance,” 2021.

[23] OJK, “TAKSONOMI HIJAU INDONESIA Indonesia Green Taxonomy,” 2022.