TITLE:
Islamic Green Finance: Shariah-Compliant Pathways towards Sustainable Development Goals (SDGs)
AUTHORS:
Wadeema Aldhaheri
KEYWORDS:
Islamic Finance, Green Sukuk, Sustainable Development Goals, Shariah Compliance, ESG Investing, Islamic Green Finance
JOURNAL NAME:
Open Journal of Applied Sciences,
Vol.15 No.5,
May
26,
2025
ABSTRACT: The urgency of addressing climate change and environmental degradation has catalyzed the development of green finance globally. Islamic finance, rooted in ethical principles and Shariah law, presents a natural alignment with sustainability goals. This paper explores the conceptual foundations, Shariah principles, practical models, challenges, and opportunities associated with Islamic Green Finance. It highlights real-world initiatives, focusing on the United Arab Emirates’ National Sustainable Finance Framework. Despite facing regulatory and market challenges, Islamic Green Finance offers significant potential to mobilize resources for sustainable development within a Shariah-compliant framework. Strategic recommendations are proposed to enhance its growth and impact globally.