THE GREEN MAQASID FRAMEWORK: REALIGNING ISLAMIC FINANCE FOR CLIMATE ACTION AND ECOLOGICAL SUSTAINABILITY
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Climate Action, Ecological Sustainability, Green Sukuk
Abstract
The accelerating climate crisis has exposed structural gaps in global financial systems, particularly in addressing environmental degradation and supporting sustainability goals. Islamic finance, guided by Maqasid al-Shariah, emphasizes justice, protection of life, and preservation of public welfare; however, its practical implementation has often focused more on legal compliance than ecological responsibility. This study aims to develop a Green Maqasid Framework that realigns the objectives of Islamic finance with climate action and environmental sustainability. A qualitative research design was applied through systematic analysis of classical Maqasid literature, contemporary Islamic economic policies, and climate governance standards, complemented by expert interviews with Shariah scholars, sustainability practitioners, and Islamic finance regulators. The findings indicate that integrating ecological protection within Maqasid prioritization—particularly Hifz al-Nafs (protection of life), Hifz al-Maal (protection of wealth), and Hifz al-Biah (environmental stewardship)—creates a normative foundation for green financing instruments such as sukuk for renewable energy, circular economy ventures, and climate-resilient infrastructure. Operationally, the proposed framework offers ethical screening indicators for evaluating environmental externalities and mandates that financial products contribute to a sustainable and low-carbon future. The study concludes that Islamic finance has untapped potential to serve as a climate-positive financial system when Maqasid is interpreted expansively to include ecological welfare. Future research and policy development should focus on standardizing environmental Shariah audit mechanisms and strengthening cross-sector collaboration to scale green Islamic finance initiatives globally.
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Copyright (c) 2025 Fatima Al-Sheikh, Daniyar Satybaldy, Maria Nilsen
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