They assert that tapping into global faith-based finance could be pivotal in supporting impoverished nations, whose requirements for climate change adaptation funds far exceed their current allocations. Md Riaz Uddin, a prominent Islamic scholar and human rights advocate from Bangladesh, underscores Islam’s emphasis on compassion towards both people and the environment.
Riaz Uddin highlights various forms of Islamic charity, obligatory or voluntary, as avenues to aid those in need or vulnerable to climate-related risks. Zakat, an obligation to assist the less fortunate, could alone generate substantial funds, potentially close to $9.8 billion in Bangladesh.
Bangladesh, facing an annual requirement of about $9 billion for climate adaptation, according to Environment, Forest and Climate Change Minister Saber Hossain Chowdhury, emphasizes the urgency for coordinated efforts. Zakat, mandatory for affluent Muslims, aims to support the impoverished, indebted, or migrants lacking resources.
However, the informal and sporadic nature of charitable giving in Bangladesh limits its long-term impact, notes Zakir H Khan, CEO of Change Initiative. Khan advocates for pooling charity funds to systematically uplift climate-vulnerable groups.
Organizations like Wateraid are already utilizing Zakat for climate adaptation initiatives. For instance, they’re constructing water solutions in regions affected by salinity, like the southwest coast of Bangladesh. Wateraid prioritizes neglected demographics, such as girls and young women, providing them with essential resources like clean drinking water and sanitary pads.
Religious scholars globally are increasingly endorsing the use of Islamic charity for climate action. In Indonesia, significant strides have been made in this regard, with the council of religious scholars issuing rulings on utilizing Zakat for climate-related projects, such as building water facilities and reforestation.
Prabowo, a trustee of Faith Invest, stresses the importance of leveraging technology in faith-based financing, from fundraising to project implementation. He underscores the potential of faith-based charity to drive impactful climate action, with examples like blockchain technology enhancing transparency in donation utilization.
