By Anisa Indah Pratiwi and Greget Kalla Buana
Can religion make us better custodians of the environment? Can we dial back on environmental degradation by encouraging faith-based institutions to take action? How does finance come into the mix? Follow along to
discover the answers to these and many more.
During the election period, an issue that is so close to home, yet many thought was underwhelmingly discussed, rose again: the intricate matter of climate crisis. Indonesia is one among more than 60 nations to hold national elections this year, engaging 4 billion people and marking a global colossal exercise. It will be crucial for voters to voice the same concern regarding the planet that people collectively share.
Over the past decades, climate change has posed an alarming threat to around 270 million people in Indonesia’s coastal-rural-urban population, as well as its landscape and ecosystems. The impact has been intense, with unpredictable seasonal shifts leading to prolonged droughts and devastating forest fires, exacerbated by rising sea levels and temperatures. The adverse impact is worse for those marginalised due to economic insecurity, while ironically, they did not either harm or have the capacity to abuse the biosphere.
Almost as a self-prophecy, the expansion of urbanisation and unconstrained exploitation of natural resources, including unethical practices related to agriculture, have made Indonesia’s carbon-rich peatlands and mangroves more susceptible to human-caused disasters. As a result, it intensifies carbon released into the atmosphere or causes heavy rainfall, like in January 2013, when it inundated Jakarta, causing approximately US$490 million in loss and damage (World Bank, 2016). The phenomenon also has deprived many farmers of reaping their harvests and, even further, hinders generations from enjoying the wealth of our natural resources.
Thus, it is unsurprising that the current practices beg for an evaluation: does rapid capitalisation do justice to humans and nature? What options do we have to reverse the current trajectory, or so to say, to cleanse our environmental sin?
Religious Dimension Point of View
The use of the word ‘‘sin’’ carries a different meaning. Agree or not, it brings about religion or faith into the climate battleground. The faith communities are no strangers to environmental preservation. Over 14 centuries ago, the Quran says, “Corruption has spread on land and sea as a result of what peopleʼs hands have done so that Allah may cause them to taste the consequences of some of their deeds and perhaps, they might return to the Right Path.” (QS Ar-Rum: 41)
The verse mirrors the role of humans as vicegerents, supposedly safeguarding the mother earth. Such tremendous wisdom is embedded in the religiosity dimension, which ideally aspires religious and secular actors to advocate for stronger political will and lead by example. This value-based perspective on environmental sustainability is far-reaching yet needs to be explored. In 2022, Indonesiaʼs G20 Presidency held the first religious summit to ensure that religion functions as a genuine source of solutions, including climate change.
The importance of faith communities in tackling the climate crisis has been named since COP 26 and further amplified in the last COP 28, where the first-ever Faith Pavilion emerged as a symbol and catalyst for transformational change, integrating spirituality and religion into the heart of climate action. Religious traditions are known to have a moral obligation that supports environmental stewardship and social justice, rooted in their holy book. Consequently, this can mobilise their followers and resources to be aligned with positive causes.
Faith-related institutions constitute the world’s third largest category of financial investors, control 10 percent of the total financial institutions, own almost 8 percent of the total habitable land surface, and 5 percent of all commercial forests worldwide (ARC, 2017). In light of this, Indonesia coined progressive motion. The country’s Ulema Council (Majelis Ulama Indonesia/MUI) has also established an Agency for Honouring Environment and Natural Resources. In the same fashion, Muhammadiyah—one of the world’s largest modern Islamic organisations based in Indonesia—launched the Muhammadiyah Climate Centre in 2023.
In the Muslim community, Islamic values profoundly shape daily practices. A hadith narrated by Muslim says “… and eat of the dish what is nearer to you…” Such eating etiquette can be contextualised into principles of environmental stewardship by minimising carbon emissions through shortened distribution and supply chains. However, a significant amount of food is wasted during Ramadan in the Arab world, reaching up to 25-50%, as reported by UNEP in 2021. Indonesia, too, faces challenges, being labelled the worldʼs second-largest food waste producer in 2017.
To address this issue, the MUIʼs Agency advocates a behavioural approach, promoting the consumption of locally sourced food through initiatives like the locavore movement. Additionally, efforts extend beyond food to energy conservation, with initiatives like the EcoMasjid programme teaching worshippers to use water and manage waste mindfully. This aligns with the teachings of Prophet Muhammad (peace be upon him), who emphasised the importance of conserving resources, even water, as demonstrated by an Australian water companyʼs reference to Prophet Muhammad’s (peace be upon him) saying with each bottle of water, “Do not waste water even if you were at a running stream.”
The Nexus
In the global fight against climate change, one resource remains vastly untapped: the immense potential of faith-based communities. As we confront the urgent need for sustainable solutions, policymakers must recognise the pivotal role these communities can play in shaping a more just and resilient future.
With approximately 84 percent of the global population identifying with a religious affiliation according to Pew Research Center, the influence of faith-based teachings cannot be understated. Across traditions, from the Zen philosophy of Thich Nhat Hanh to Pope Francisʼs encyclical “Laudato Si,” a rich tapestry of wisdom speaks to the imperative of environmental stewardship. These teachings inspire individual action and offer a moral framework for collective responsibility in tackling the climate crisis.
Moreover, the impact of faith-based communities extends beyond rhetoric to tangible outcomes. In Indonesia, for example, religious leaders have successfully increased measles vaccination coverage among Muslim communities, demonstrating the potential of faith-based advocacy to address pressing social issues. By leveraging their moral authority and organisational networks, these communities can serve as powerful allies in the fight against climate change.
In September 2022, Indonesia updated its 2015 Nationally Determined Contribution to the Paris Agreement, committing to reduce GHG emissions by 32 percent (or 43 percent, with international assistance) by 2030. Indonesia committed to reaching net-zero emissions by 2060 or sooner in its long-term strategy on Low Carbon and Climate Resilience. This commitment is also showcased within The National Medium Term Development Plan for 2015–2019, which identifies a green economy as the foundation for the country’s development programme, focusing on increasing climate resilience. However, it requires US$322.86 billion to achieve the climate target by 2030.
Financially, faith-based institutions wield significant influence, with assets totalling billions of dollars. Organisations like FaithInvest are already working to align faith-based investments with sustainable practices, channelling funds towards projects that promote climate resilience and adaptation. UNEP’s Faith for Earth Initiative report recorded a contribution from sixteen congregations of Dominican Sisters across the US, who provided US$46 million in seed capital for an investment fund focusing on providing access to clean energy in India and Sub-Saharan Africa. Similarly, Sikh groups worldwide have united to fight climate change by donating 1 million trees in 1,820 locations globally in 2019—a campaigned initiated by EcoSikh.
Within Islamic finance, initiatives such as global zakat or almsgiving, US$550-600 billion according to World Bank and Islamic Development Bank, present a unique opportunity to mobilise resources for climate action. From the commercial sector, US$7.2 billion was raised through the Green Sukuk, a Sharia-compliant bond (2018-2023) issued by the Government of Indonesia, reducing 10.5 million tonnes of CO2e.
Despite no longer holding the world’s most prominent Muslim population attribute — Pakistan has taken it over in 2024 — Indonesian Muslims remain significant contributing workforce for the country’s economy, and so does every country with their respective faith followers. The nexus is ontologically clear between faith and environment, as well as people as the subject and finance as the tools. A new paradigm shift on responsible economic activity inspired by religious values would be very impactful to drive a new narrative toward a more sustainable livelihood.
About the Authors
Anisa Indah Pratiwi is an aspiring policy analyst focusing on development finance. She holds a Master in Public Policy from University College London, as a Chevening Scholar. She has been immersed in the development sector since her early professional years, working with UNICEF, UNDP, the ASEAN Secretariat, and a public affairs consulting firm.
Greget Kalla Buana is an Islamic finance specialist who graduated with a Master of Islamic Finance and Management at Durham University, United Kingdom. His work experience has always been in the Islamic finance and development sector, such as Dompet Dhuafa, the Islamic Banking Department of the Indonesia Financial Services Authority, and UNDP.
