Sustainable Financing for Biogas Fuel from Palm Oil Industry Waste

Abstract

Sustainable development as a new paradigm in generating economic growth has gained the attention and commitent of many institutions and countries. This issue is so important, that the United Nations in cooperation with various governments, civil society and other economic players have developed a sustainable development framework that is expected to bring economic and environmental sustainability interests together, provide economic transformation process, and expand access for the poor to get out of poverty, and enforce justice. This also takes into account that the social and environmental issues which have not been included in the economic calculations have become important elements that need to be considered. In particular, environmental sustainability is examined to better understand its impact on consumers and firm performance. We introduced Sustainable Financing, which is used as variable to implementing financial institutions' lending policies. Sustainable finance supporting the principles of sustainable development namely the 4P (pro-growth, pro-jobs, pro-poor, and pro-environment). Due to the high energy requirements to support development, sustainable finance activities will give priority to the development of new renewable energy and energy conservation from Biogas Fuel escpecially based on Palm Oil Industry waste. In the long term, the distribution of sustainable financing to strategic sector industries is expected to encourage sustainable economic growth, which in turn will provide a larger market for financial services institutions.