Islamic framework for transition towards sustainable energy: Qur’anic sources, legal maxims, and contemporary practices

Akbar, Mohamed Aslam and Mohammed, Mustafa Omar and Muhamad Ramlan, Anaztasia Natasha and Mohd Thas Thaker, Mohamed Asmy and Khaliq, Ahmad and Allah Pitchay, Anwar (2026) Islamic framework for transition towards sustainable energy: Qur’anic sources, legal maxims, and contemporary practices. In: ISLAMIC FINANCE, ENERGY TRANSITION AND SUSTAINABILITY. Energy Transition, Carbon Neutrality, and Sustainability, 4 . World Scientific Publishing, Singapore, pp. 65-92. ISBN 978-981-98-2199-0

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Abstract

As the global community grapples with the escalating challenges of climate change and resource depletion, renewable energy emerges as a vital component of sustainable development and energy security. Within this context, Islamic economics and finance that are grounded in principles of responsible resource stewardship, conservation, and ethical consumption, offer a compelling alternative to conventional financing mechanisms. Rooted in the Qur’ān, Sunnah, Maqāṣid al-Sharīʿah, and Islamic legal maxims, the Sharīʿah framework emphasizes equilibrium in the utilization of natural resources entrusted by Allah. This study is motivated by the urgent need to integrate Islamic financial principles into global sustainability agendas, particularly in promoting renewable energy solutions. Despite the growing relevance of Sharīʿah-compliant financing tools — such as sukuk (Islamic bonds) — in funding green energy projects, a gap persists between Islamic legal theory and its practical application in policy and technological implementation. Employing a doctrinal and case study methodology, this research examines the ethical foundations of Islamic environmental stewardship and analyzes the alignment of Islamic financial instruments with sustainable energy financing. Case studies of large-scale renewable energy projects like Tadau Energy, Sarawak Hidro, and Muara Laboh Geothermal, demonstrate the operationalization of Sharīʿah-based finance in Malaysia and Indonesia. The findings have significant policy implications. They advocate for incorporating Sharīʿah principles into national energy strategies and developing regulatory frameworks that enable the use of green sukuk and other Islamic tools. Such integration not only enhances financial inclusivity but also facilitates a more just, balanced, and sustainable energy transition aligned with global climate goals.

Item Type:	Book Chapter
Uncontrolled Keywords:	Sustainable energy, Shari’ah-compliant investments, green sukuk, Islamic legal maxims and environmental policy
Subjects:	BPH Islamic Economics H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance T Technology > TJ Mechanical engineering and machinery > TJ807 Renewable energy sources
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Dr Mohamed Aslam Akbar
Date Deposited:	25 May 2026 12:04
Last Modified:	25 May 2026 12:04
Queue Number:	2026-05-Q3544
URI:	http://irep.iium.edu.my/id/eprint/129124

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