Reconstruction of the Sustainable Finance Scheme Framework with Indigenous Law Communities

Tandori Tandori, Caecilia Wahyu Estining Rahayu

Abstract


This study aims to reconstruct sustainable finance as a rights-based legal-economic regime that ensures justice for indigenous peoples, given that global green finance instruments frequently fail to protectiIndigenous territorial rights and dignity. The method employs socio-legal library research using conceptual and comparative approaches, analyzed through the energy justice framework and Indigenous stakeholder theory. The results demonstrate that mainstream ESG standards, carbon markets, and green financial instruments suffer from recognition and procedural justice deficits that facilitate green colonialism and Indigenous land dispossession. The conclusion emphasizes the necessity of a paradigm shift from voluntary compliance toward a rights-based approach through the formulation of an Indigenous Sustainable Finance Scheme grounded in culturally aligned governance, legally binding financial instruments, recognition of the rights of nature, and substantive free, prior, and informed consent. The implications highlight the need for regulators, financial practitioners, and scholars to reform sustainable finance architectures by recognizing Indigenous peoples as legal-economic subjects and as a prerequisite for long-term investment sustainability.


Keywords


energy justice; ESG regime; green colonialism; indigenous peoples; indigenous sustainable finance

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References


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DOI: https://doi.org/10.24167/jmbe.v7i2.14808

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