Promoting Climate Action through Green Waqf Framework
September 21, 2022
Jakarta, September 21, 2022 – Badan Wakaf Indonesia (BWI), in collaboration with the United Nations Development Programme (UNDP), Waqf Centre for Indonesian Development and Studies (WaCIDS), and the Green Waqf Movement Team, organized Roundtable discussion on dissemination of the Green Waqf Framework to introduce and promote the Green Waqf Framework to all stakeholders and potential partners. The event, held on Wednesday, was also supported by the Institute Pertanian Bogor (IPB) and funded by NDC Support Programme.
Environmental and energy issues get more serious attention worldwide, including in Indonesia. In the 2015 United Nations Convention on Climate Change in Paris, France, the Indonesian government committed to reducing greenhouse gas (GHG) emissions by 29% by 2030. Islamic social finance plays a key role in equitable income distribution, maintaining purchasing power and creating business opportunities for all. To accelerate productive economic activities and ultimately foster inclusive and sustainable economic growth Islamic social finance is required.
Considering the number of funds needed to fulfil commitments to environmental and energy issues, alternative financing is needed that does not lack the state's fiscal budget, one of which can come from waqf. Waqf is an Islamic charity referring to the dedication of any property to secure any benefit that refers to other human beings. With the large potential of waqf assets in Indonesia, the use of waqf instruments as a source of financing in dealing with environmental and energy issues is very supportive.
To increase the use of waqf in dealing with environmental issues with real socio-environmental impacts, UNDP, BWI, WaCIDS, and Green Waqf have developed the Green Waqf Framework. The Green Waqf Framework is a framework that can be used as a reference in developing a project in the green sector sourced from waqf funds and other potentially relevant sources of financing.
In her opening remarks Ms. Qing Xu, Regional Climate Finance Specialist, UNDP mentioned ``Waqf provides a window of opportunity to address environmental crises. The economic value of waqf can be maximized and can also contribute to programs working towards poverty reduction. Given that achieving the SDGs requires substantial financial and technical resources, this framework aims to utilize waqf to support climate action with real socio-environmental impacts. ‘’
“Green Waqf is an initiative that is very relevant to the Indonesian context, considering that more than 50% of the workforce comes from the agriculture, livestock, and forestry sectors which can be affected by climate change. It is an excellent initiative to bring affordable renewable energy,” said Imam Teguh Saptono, Vice Chairman of Badan Wakaf Indonesia.
Through his presentation, Pak Irfan Syauqi Beik , member of commissioner of Badan Wakaf Indonesia explained four proposed stages and the importance of collaboration with various related institutions to implement Green Waqf. It is hoped that the Green Waqf Framework can be the guidance for the application of Green Waqf in Indonesia and other countries so that development continues to create environmental balance and minimize energy crises that may occur in the future.
The report consists of six chapters. Chapter 1 elaborates on existing climate and energy issues in Indonesia as well as challenges in financing to fulfil Nationally Determined Contribution (NDC). Chapter 2 explains the concept of waqf and its potential to solve environmental and social welfare problems. Chapter 3 focuses on the Green Waqf Framework, which also discusses four stages proposed: i) preconditional stage, ii) consolidation stage, iii) project development stage, and iv) mainstreaming stage. Chapter 4 provides the business model foundation for Green Waqf Project implementation, including stakeholder mapping and analysis, which mainly consists of Islamic finance-related stakeholders and green-related stakeholders. Chapter 5 elaborates on several evidence-based practices on environmental-related waqf projects. Chapter 6 summarizes policy recommendations.
About Green Waqf: Besides being able to facilitate the collaboration of waqf activists, environmental activists, and New and Renewable Energy (EBT) activists, Green Waqf is very much in line with the various Sustainable Development Goals (SDGs). The orientation of the Green Waqf is to answer today's global problems, including the issue of climate change and energy availability.
UNDP Indonesia Communications Specialist, Tomi Soetjipto, firstname.lastname@example.org
Innovative Financing Lab Communication & Strategic Engagement Specialist , Kamal Najmus Salehin, email@example.com