Green finance and its Maqasid al-Shari’ah

Saleh, Abdulmajid Obaid Hasan and Busari, Saheed Abdullahi and Muayyad, Deden Misbahudin (2025) Green finance and its Maqasid al-Shari’ah. In: Islamic Green Finance. Routledge, pp. 45-55.

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Abstract

The resurgence of green finance in the contemporary economic environment involves financial mechanisms that are designed to support environmentally sus�tainable projects and initiatives. It encompasses various instruments, such as green bonds and loans, directing funds towards activities that promote ecological conser�vation and climate mitigation. This approach reflects a global shift towards respon�sible and ethical financial practices, where considerations extend beyond economic returns to encompass positive environmental and social impacts (Liu & Wu, 2023; Khan, 2022). Green finance, according to the Organization for Economic Cooperation and Development (OECD), is described as financial activities geared towards “achieving economic growth while reducing pollution and greenhouse gas emissions, minimizing waste, and improving the efficiency of the use of nat�ural resources”. Over the past ten years, the global market for green finance has experienced rapid expansion. This growth is evident in the creation of financial instruments such as green-rated bonds, Green Sukuk, green loans, green invest�ment funds, and green insurance (OECD, 2023). Notably, the issuance of Green Sukuk has become a recent addition to this landscape. While the inception of green bonds dates back to 2008, the market has undergone substantial evolution. It now plays a crucial role in mobilizing funds for the 17 UN Sustainable Development Goals (SDGs) through the introduction of innovative structures, taxonomies, and governance frameworks (Liu & Lai, 2021). In addition, the consequences of the G-20 meeting in Chengdu, China, in July 2016 marked a transformative moment in global finance. However, a study by Noh (2022) posits that the alignment of eco�nomic sustainability with Maqasid al-Shari’ah is deeply rooted in hifz al-mal, with the effectiveness of Islamic social finance like Zakat and Waqf, in creating sustain�able practices among industrial players

Item Type:	Book Chapter
Subjects:	BPH Islamic Economics BPH Islamic Economics > BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences
Depositing User:	Dr Abdulmajid Obaid Hasan Saleh
Date Deposited:	27 Aug 2024 12:11
Last Modified:	27 Aug 2024 15:26
URI:	http://irep.iium.edu.my/id/eprint/114071

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