One of the key announcements at G20, happening simultaneously with the COP27, was the launch of the Just Energy Transition Partnership (JETP) project led by the US and Japan.
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Just Transition: USD 20 billion for Indonesia
Under this partnership, Indonesia shall receive USD 20 billion in funding to move its energy from coal towards renewables. In response, the country expects to move the peak of carbon emissions ahead from 2038 to 2030 and keep on a trajectory consistent with the 1.5 °C target. Similar projects are in the pipeline for Vietnam, India, and Senegal.
Dwelling on Indonesia for a little longer, the waqf (pronounced wəkf), or charitable endowment under Islamic law is being increasingly put to service regarding climate goals in Indonesia. Waqf, dating back to the 9th century AD bears some similarities to impact financing instruments such as ESG funds. A “productive waqf” (unlike “social waqfs” or purely charitable ones) is a form of investment in ethical business. The waqif, or donors, have so far preferred social purposes, such as education or fighting poverty. During a recent G20 meeting, the Vice President of Indonesia Ma’ruf Amin called for tapping into waqf potential to finance the country’s clean energy transition.[1]
