Climate change is the greatest crisis of this century that must be addressed properly and immediately. Rising global temperatures, extreme weather, and the growing threat of food crisis are becoming more apparent. Developing countries such as Indonesia are among the most affected and vulnerable, as they remain highly dependence on natural resources and have large populations with low incomes. The question is: how can we finance climate action in a way that is fair, sustainable, and in line with our cultural values?
One answer lies in Islamic Social Finance (ISF). As the country with the largest Muslim population in the world, Indonesia has tremendous spiritual and social capital through the instruments of zakat, infaq, sadaqah, and waqf (ZISWAF). The potential could even reach more than Rp327 trillion per year from zakat alone, as well as hundreds of thousands of hectares of waqf assets. These figures are not just statistics; they represent a huge opportunity to make religious values the driving force behind climate action.
When considering the value and meaning of human creation, in Islam itself, humans are referred to as khalifatullah fil ardh, meaning humans whom Allah has tasked with protecting and preserving the earth, not destroying it. The principle of hablum minal’alam also emphasizes that protecting the environment is part of spiritual worship. The Qur’an also reminds us: “Do not cause corruption on earth after Allah has set it right” (QS. Al-A’raf: 56).
Based on this, humans have a moral responsibility to care for and protect the earth as best as possible. Environmental issues can also be integrated with religious narratives. This can be done through programs such as planting trees as a form of oxygen charity or managing forests through green waqf. When environmental issues can be linked to the value of worship, it will be much easier for the community to accept and get involved.
Several programs have also proven that ISF has the potential to prevent further climate damage through the following programs:
- Sedekah Energy: Installation of solar panels in mosques in Lombok, Yogyakarta, West Java, and West Sumatra, which makes places of worship energy independent, reduces carbon emissions, and lowers electricity costs.
- Forest Waqf: Management of 52 hectares of waqf land for conservation, environmental education, and empowerment of communities living near forests.
- Microhydro for Villages: Microhydro power projects based on zakat and waqf that provide access to clean energy for hundreds of households in remote areas.
These programs not only reduce emissions but also create new economic opportunities, raise public awareness, and strengthen national resilience and food security.
Despite its great potential, there are a number of challenges. From a theological perspective, there is still debate about whether zakat can be used for environmental programs. From an institutional perspective, national regulations on green zakat or green waqf are still minimal. Meanwhile, from a technological perspective, transparency and digital-based reporting need to be improved so that the younger generation will have more trust and become more involved.
However, challenges like these can open up new opportunities for innovation. The integration of ISF with modern Islamic financial instruments such as green sukuk or cash waqf-linked sukuk can be a model for creative financing. Cross-sector collaboration between zakat institutions, universities, the private sector, the government, and international institutions will accelerate its impact.
Islamic social finance is not just a mechanism for economic redistribution but also a tool for social and environmental change. If managed with a sustainable vision, ISF can become the driving force behind a fair and inclusive green civilization.
In the spirit of rahmatan lil alamin, caring for the earth is not only an ecological responsibility but also a spiritual endeavor. Now is the time for Muslims to be at the forefront of climate action, with zakat, infaq, sadaqah, and waqf as the main fuel.
