ASEAN Toward Circular Economy and Sustainable Energy in Tackling Climate Change

Abstract

Considering the region is highly vulnerable to climate change, all ASEAN Member States have ratified the Paris Agreement and agreed to the Regional Roadmap for Implementing the 2030 Agenda for Sustainable Development in Asia and the Pacific. To provide the ASEAN taxonomy for sustainable finance, Islamic finance should be considered as a part of it. Therefore, this chapter will provide an Islamic Green Financing Taxonomy to help stakeholders determine which activities qualify as sustainable and which instrument is suitable for the activity. As a leading community in the world that drives the global halal industry, ASEAN also can be a best practice for implementing Islamic Green Financing. Through literature study, this chapter purposes to (1) describe the framework of ASEAN for the circular economy and sustainable energy in tackling the climate change, (2) describe the ASEAN taxonomy, and (3) describe the proposed Islamic Green Financing Taxonomy.