Green Industrial Policy In A Fragmented World

Indonesia illustrates both the opportunities and constraints facing the Global South in pursuing green industrialization. While shifting global supply chains create openings to attract low-carbon investment, inward-looking policies in major economies and China’s dominance in clean-tech value chains limit latecomer advancement. A realistic green industrial policy must balance short-term efforts to capture relocating industries with long-term capability building in more complex technologies. Strengthening domestic renewable energy demand is crucial, alongside institutional reforms and a more supportive international economic order to sustain competitive green industrial development.

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