Balancing industries of the past and the future
Indonesia’s green taxonomy walks a tightrope; emissions-wary investors should mind the gap in the new three-tier classification.
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CHRISTINA NG
In January 2022, President Joko Widodo of Indonesia launched the country’s first green taxonomy. This is a positive and potentially significant move to unlock green private capital to meet Indonesia’s commitments under the Paris Agreement.
Unlike other classification systems, Indonesia’s green taxonomy applies the traffic light system to represent the types of activities from a sustainability lens: green for activities that “protect or improve the environment”, yellow for those that are “not significantly harmful to the environment”, and red for activities “harmful to the environment”.
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