Halal Certification in the Era of Green Economy and Circular Innovation

Nur Aini; Riska Tezara Go

Nur Aini Department of Sharia Finance, Institut Teknologi dan Bisnis Ahmad Dahlan, Indonesia
Riska Tezara Go Department of Resource and Environmental Economics, IPB University, Indonesia

Keywords: Halal Certification, Eco -Labelling, Green Economy, Circular Innovation, Sustainable Halal Industry

Abstract

The rapid growth of the global halal industry has drawn increasing attention to how halal certification can align with the principles of sustainable development. This study explores the integration of halal certification with the concepts of the green economy and circular economy to strengthen the competitiveness of Indonesia’s halal industry. Using a qualitative descriptive approach through questionnaires with several business actors in various types of businesses combined with a systematic literature review, the findings highlight that halal certification not only enhances consumer trust but also encourages the use of high-quality raw materials. Within the green economy context, circular innovation provides solutions for waste management, such as food wast e recycling into renewable energy or by -product utilization for agriculture. The main challenges identified include limited access to halal -certified raw materials, funding, technology, and literacy. The integration of halal certification with eco-labelling is recognized as a key strategy to meet environmentally conscious consumer demands and strengthen export competitiveness. This study concludes that the convergence of halal certification with green economy and circular innovation has the potential to cre ate a sustainable, competitive, and globally recognized halal industry. Recommendations include harmonizing halal and eco-label standards internationally, expanding digitalization, investing in green technologies, and fostering multi-stakeholder collaboration to develop a sustainable halal ecosystem.

Author Biography

Nur Aini, Department of Sharia Finance, Institut Teknologi dan Bisnis Ahmad Dahlan, Indonesia

The rapid growth of the global halal industry has drawn increasing attention to how halal certification can align with the principles of sustainable development. This study explores the integration of halal certification with the concepts of the green economy and circular economy to strengthen the competitiveness of Indonesia’s halal industry. Using a qualitative descriptive approach through questionnaires with several business actors in various types of businesses combined with a systematic literature review, the findings highlight that halal certification not only enhances consumer trust but also encourages the use of high-quality raw materials. Within the green economy context, circular innovation provides solutions for waste management, such as food wast e recycling into renewable energy or by -product utilization for agriculture. The main challenges identified include limited access to halal -certified raw materials, funding, technology, and literacy. The integration of halal certification with eco-labelling is recognized as a key strategy to meet environmentally conscious consumer demands and strengthen export competitiveness. This study concludes that the convergence of halal certification with green economy and circular innovation has the potential to cre ate a sustainable, competitive, and globally recognized halal industry. Recommendations include harmonizing halal and eco-label standards internationally, expanding digitalization, investing in green technologies, and fostering multi-stakeholder collaboration to develop a sustainable halal ecosystem.