Greening the Law: A Comparative Study of Green Investment Regulations in Indonesia, Singapore, and the European Union

DOI

10.2991/978-2-38476-491-4_20How to use a DOI?

Keywords

Green Investment; Sustainable Finance; Comparative Law

Abstract

This paper conducts a comparative legal analysis of green investment regulations in Indonesia, Singapore, and the European Union—three jurisdictions that represent varying levels of regulatory maturity, institutional capacity, and economic development. As climate change and environmental degradation intensify, the transition to sustainable finance has become a global priority. Legal frameworks now play a central role in directing financial flows toward environmentally responsible investments by defining sustainable economic activities, mandating ESG disclosures, and establishing mechanisms such as carbon markets and green bonds. The study adopts a normative and comparative legal methodology to examine the regulatory landscape in each jurisdiction. The European Union is identified as a global frontrunner, offering a prescriptive and science-based regulatory framework through instruments such as the EU Taxonomy, SFDR, CSRD, and CSDDD. Singapore’s approach is characterized by regulatory pragmatism, digital innovation, and market-driven incentives as evidenced in the Green Finance Action Plan. Indonesia, while progressively advancing its sustainable finance agenda, faces regulatory fragmentation and implementation challenges despite important initiatives like the Indonesian Green Taxonomy and carbon trading regulations issued by OJK. The analysis highlights key differences in taxonomy design, disclosure obligations, institutional coordination, and enforcement mechanisms. It argues that Indonesia could benefit from selectively adopting elements of EU and Singaporean models to enhance regulatory coherence, market readiness, and policy credibility. Ultimately, this research contributes to the broader discourse on regulatory harmonization in sustainable finance and offers concrete policy recommendations to strengthen legal frameworks for green investment in emerging economies.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Dwi Ratna Indri Hapsari
AU  - Andistya Pratama
AU  - Aditya Aji Syuhadha Ilmiawan
AU  - Isdian Anggraeny
AU  - Nur Putri Hidayah
PY  - 2025
DA  - 2025/11/18
TI  - Greening the Law: A Comparative Study of Green Investment Regulations in Indonesia, Singapore, and the European Union
BT  - Proceedings of the 6th International Conference on Law Reform (INCLAR 2025)
PB  - Atlantis Press
SP  - 211
EP  - 226
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-491-4_20
DO  - 10.2991/978-2-38476-491-4_20
ID  - Hapsari2025
ER  -