NAVIGATING THE ENVIRONMENT-ECONOMY DILEMMA IN DEVELOPPING COUNTRY: A COMPREHENSIVE CLIMATE FINANCE MECHANISMS FOR ENHANCING THE SUSTAINABILITY IN MANDALIKA SEZ

Abstract

This study investigates the challenges faced by developing countries amid the current climate and energy crises, balanced against the imperative for economic growth. Utilizing qualitative methods, the research analyzes secondary literature from scholarly articles and policy documents, and conducts content analysis of various reports concerning the Mandalika Special Economic Zone (SEZ), chosen for its ecotourism-oriented design. Findings indicate that Mandalika SEZ meets the criteria for climate financing; however, significant issues such as funding shortages and trust deficits were identified. This study proposes a novel climate finance scheme promoting collaboration among stakeholders, including BPDLH, PLN, ITDC, SMI, DJP, philanthropic organizations, and international institutions. The scheme aims to collect and manage climate finance through green bonds, CSR funds, taxes, and grants. The proposal features Rinonce EcoVenture, a smart application, required by potential funders and other stakeholders to assist in monitoring and controlling the project and the associated funds. The study concludes that a robust climate finance scheme, supported by the smart application, can significantly enhance the project success and promote sustainable development, providing solution to the dilemma faced by developing countries.

Keywords: climate finance, smart technology, sustainable development, Mandalika SEZ