A CRITICAL ANALYSIS OF GREEN ISLAMIC FINANCE, ITS CHALLENGES, PROSPECTS, AND ALIGNMENT WITH SUSTAINABLE DEVELOPMENT GOALS (SDGS)
DOI:
https://doi.org/10.55439/EIT/vol13_iss2/654Keywords:
Green Islamic finance, green sukuk, blue sukuk, Sustainable Development Goals (SDGs), Islamic capital market, environmental sustainability, sustainable investments.Abstract
This article provides a critical analysis of Green Islamic Finance, focusing on its challenges, prospects, and alignment with the Sustainable Development Goals (SDGs). It explores the role of Islamic capital markets in promoting sustainable finance, particularly through instruments like green sukuk. The study highlights the synergies between Islamic financial principles and environmental sustainability while identifying regulatory, operational, and awareness-related barriers to wider adoption. By assessing regulatory frameworks and emerging opportunities such as ESG sukuk and blue sukuk, the article underscores the potential of Islamic finance in driving sustainable investments. The findings suggest that while Islamic finance aligns well with SDGs, further standardization, innovation, and policy support are essential for maximizing its impact on global sustainability efforts.
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