Malaysia is on its way to becoming a low-carbon nation. The goal is to reach net-zero carbon emissions by 2040, ten years earlier than the Paris Agreement’s deadline. Net-zero carbon emissions are carbon emissions that are balanced by removing the equivalent amount of carbon from the atmosphere. In other words, carbon emissions into the atmosphere should be less than carbon removal from the atmosphere. This can be accomplished by planting more trees, switching to renewable fuel, or transitioning to an electric and hydrogen-powered transportation system.
Various efforts must be undertaken to acquire the position of a low-carbon nation. It begins at the highest level of government, with the introduction and implementation of laws and regulations that promote the formation of a low-carbon country, and progresses through a public commitment to cultivating a low-carbon way of life. Economic instruments could be employed to attain the goal of a low-carbon nation. Waqf (charitable endowment) is one of the Islamic economic instruments that could be utilised to help Malaysia become a low-carbon nation.
Waqf is a philanthropic instrument that promotes good acts (birr) and has the potential to benefit the entire community. The charitable act will bring the giver (waqif) closer to Allah SWT. It is mentioned in surah Ali Imran (3), verse 92, that one can only acquire perfect devotion by sacrificing a portion of one’s property. As a result, allocating a portion of one’s property to safeguard the environment is likewise a noble act. Additionally, environmental protection is also advocated in the Islamic worldview.
The use of waqf instruments to protect natural resources has a long tradition in Islam. In fact, the Prophet SAW donated (waqf) his seven date gardens in Medina, which was the first waqf identified. When obtaining land in Khaibar, Umar bin Khattab also endowed the area for agricultural purposes. The farm’s harvest was given to the needy. Waqf land cannot be sold, bequeathed, or given away. Usman bin Affan has also established a water waqf. There was a drought at the time, which prompted a water issue. Usman had purchased a well owned by a Jew, who had initially sold the water to the inhabitants of Medina at an exorbitant price. To address the challenging circumstance, Usman took the initiative to purchase the well, and the neighbourhood was subsequently provided with free access to water.
Currently, several waqf funds for environmental conservation have been initiated in Malaysia. For example, the Ministry of Environment and Water (KASA) (currently known as Ministry of Environment and Climate Change) established the Wakaf Air (water endowment fund) in collaboration with Yayasan Waqaf Malaysia (YWM) to finance small-scale water service projects. KASA has also introduced the Wakaf Masjid Hijau (green mosque endowment fund) to support mosque development projects that utilise green technology throughout Malaysia. Non-governmental organisations (NGOs) and private firms are also engaging in solar energy endowment projects in mosques and educational institutions.
These initiatives, however, could be expanded further for Malaysia to become a low-carbon nation. The consumption of renewable energy, particularly for supplying electricity and transportation sectors, should be prioritised. Renewable energy refers to any form of primary energy derived from unlimited sources such as solar, biomass, biogas, hydro, wind and geothermal. It is a type of “more sustainable energy” that is currently the preferred option due to its “low carbon generation” properties. Renewable energy is expected to have a lower environmental impact. It is different from non-renewable fuels like coal, petroleum, and natural gas. These types of fuel emit a lot of carbon, which is bad for the environment, promotes global warming, and is scarce in nature.
Waqf may be able to help with the shift to renewable energy. In addition to establishing a waqf fund to acquire solar panels to generate electricity, a cash waqf fund might be established to promote renewable energy research and development (R&D). R&D activities are expensive. As a result, a substantial fund is required to support the activity. Thus, cash waqf, whether contributed by individuals or organisations, could be utilised to promote R&D in renewable energy. Finally, its aim is to provide clean, inexpensive electricity to everyone, regardless of race or religion.
The establishment of a renewable energy waqf fund has the potential to succeed, but some issues need to be carefully assessed beforehand. Among the issues that need to be addressed are various rules and regulations to control the administration of the waqf, the agency or organisation that will handle the fund, the best approach to manage the fund, and the most effective strategy to distribute the funds. These challenges must be thoroughly examined before the waqf fund for renewable energy could be established.