Mosaic Launches Forest Waqf Initiative for Independent Climate Action Financing

Kompas.com - Mosaic (Muslims for Shared Action on Climate Impact) or the Collaboration of Muslims for Climate Impact launched the Forest Waqf initiative as one of the innovative funding solutions for climate change issues facing Indonesia (30/Indonesia) 11/2023).

Forest Waqf is a collaborative movement raising funds for forest preservation through waqf as one of the instruments of Islamic philanthropy. Rika Novayanti, the Mosaic Steering Committee, said: “The launch of the Forest Waqf initiative in the context of COP 28 in which various countries negotiate on the achievement of emission targets is the right moment to send an emergency signal that nature protection is more important than profit and political interests.”

The Ministry of Finance's Fiscal Policy Board estimates that Indonesia needs USD 281 Billion or about Rp 4.299 Trillion to reach the NDC (Nationally Determined Contribution) target by 2030. Islamic finance and philanthropy can be an alternative to innovative funding solutions due to its enormous potential in Indonesia. Deputy Secretary of the Indonesian Waqaf Agency, Emmy Hamidiyah said, “the potential of waqaf reaches 180 trillion rupiah every year. In our records as of October, 2.3 trillion has been raised through waqf money.” “But most of it is still channeled for education and poverty alleviation while for the environment it is still as small as once or below 5 billion rupiah,” he said. For information, the Forest Waqf Initiative has been running since several years ago and was started independently by several community communities in several locations such as Forest Waqf in Janto, Nanggroe Aceh Darussalam. A similar forest preservation movement has also been carried out by the community of Laskar Hijau people in Gunung Lemongan, Lumajang Regency, East Java.

Green economy and carbon trading

Professor of the Faculty of Economics, University of Indonesia, Prof. Bambang Brodjonegoro said that, as in Brazil and Congo, Indonesian forests have tremendous potential to drive the growth of green economy and carbon trading.

“Global demand for carbon trading is already there, now it remains to be seen how we provide the supply,” he said. According to him, the Forest Waqf is in line with the vision of the social forestry program of the government which aims to maintain sustainable forest conditions while still providing economic benefits to the lives of the surrounding communities. “I would like to see the forest waqf promoted as part of an effort to restore the forest's role as the most valuable asset, which today is increasingly forgotten,” hopes Prof. Bambang.

On the same occasion, Head of Indonesia Stock Exchange Development Division, Ignatius Denny Wicaksono expressed his appreciation for this forest waqaf initiative. “In the carbon credit exchange, initiatives like Forest Waqf have the potential to become a premium category carbon credit. Because it not only produces carbon, but it also provides tangible social benefits to the surrounding communities and biodiversity.” The forest waqf campaign launched today aims to raise public awareness of the potential of Islamic philanthropy as one of the innovative solutions to climate action financing.

Funds raised from this fundraiser will be channeled for ecological, economic and educational programs through the Bogor Forest Waqf Foundation as one of the forest waqf nazirs located in Cibunian Village, Bogor Regency. Read also: Indonesian Forest Quality “Through the forest waqf campaign, we hope to inspire that climate funding should not only be sourced from abroad, but can also be through collaboration and harnessing the huge potential of community funding,” concluded Rika.

This article has appeared on Kompas.com under the title “Mosaic Launches Forest Waqf Initiative for Self-financing Climate Action”, Click to read: https://lestari.kompas.com/read/2023/12/01/180000386/mosaic-luncurkan-inisiatif-wakaf-hutan-untuk-pembiayaan-aksi-iklim-mandiri?page=2.