The Importance of Green Financing to Support Palm Oil Circular Economy Initiatives

This journal examines the role of green financing in promoting a circular economy in the palm oil industry amidst deforestation pressures and global decarbonization demands. Through a PRISMA-based Systematic Literature Review of 34 articles (2021–2025), this study analyzes financial instruments, policy frameworks, circular technologies, and smallholder inclusion. The results indicate that green bonds, blended finance, and sustainability-based credit are effective in financing renewable energy, waste valorization, and traceability systems. However, smallholder access remains limited due to structural and regulatory barriers. Policy harmonization and innovative inclusive financing are needed.