This book offers a comprehensive overview of Islamic finance and sustainability, showcasing how Islamic financial instruments can support environmentally sustainable initiatives.

It delves into recent efforts to develop a Shariah-compliant financial and banking system that is sustainable, efficient, and stable. Contributors focus on Islamic financial products and tools, highlighting their potential to advance environmental sustainability. The discussions are organized around key themes, including the principles of sustainability in Islamic finance, risk assessment and mitigation, the Islamic stock market and sustainability, Green Fintech in Islamic banking and finance, and Green Sukuk in developing and emerging markets. The book addresses how Islamic finance can bridge the gap in green financing globally. Particular emphasis is placed on Green Sukuk, a Shariah-compliant bond created to fund environmentally sustainable projects, including those aimed at combating climate change and promoting ecological conservation.

This comprehensive volume on Islamic finance and sustainability will be invaluable for policymakers, researchers, and academics interested in Islamic economics and finance, sustainable finance, and the green economy.

List of Contributors

About the Editors

Acknowledgments

Introductory Remarks

PART I Pre-Requisites Principles on Green Finance for Sustainability: The Role of Islamic Finance

1 Islamic Finance and Its Role in Fostering Sustainable and Inclusive Economic Growth: A Bibliometric and Content Analysis

HENGCHAO ZHANG, RAFIA AFROZ, RIASAT AMIN IMON, AND KINAN SALIM

2 Fostering Green Islamic Financing through Innovation and Education: A Literature Review

AIDRINA SOFIADIN

3 Green Fintech Innovations in Islamic Banking: Opportunities and Challenges

ALI USMAN JIBO

4 Principles of Sustainability in Islamic Finance

SHAHIDA SHAHIMI AND SITI AISYAH ZAHARI

PART II Building Islamic Finance Schemes for Sustainable Green Finance System

5 Factors Influencing Purchasing of Green Islamic Bank Products: Arabic Term as the Moderator

ANWAR ALLAH PITCHAY, LINA FARHANAH MOHD SAAD, YUVARAJ GANESAN, MUHAMMAD SHABIR SHAHARUDIN, MOHAMED ASMY MOHD THAS THAKER, AND HASSANUDIN MOHD THAS THAKER

6 Green Sukuk and Musharakah-Based Contracts for Financing Agritech in Nigeria: Prospects and Challenges

MUHAMMAD RABIU DANLAMI AND LUTFI ABDUL RAZAK

7 Trailblazing Social Takaful Fund for Green Sustainability Project: A Case of Cyntok Batik Social Enterprise

NORAZLINA ABD WAHAB, NOR HAYATI AHMAD, SELAMAH MAAMOR, MOHAMAD YAZID ISA, ZAIRY ZAINOL, AND WAN AHAMAD NAJIB WAN AHAMAD LOTFI

8 Advancing a Just Transition: A Critical Analysis of Islamic Green Finance Policy Frameworks and Initiatives in Malaysia

NOOR SUHAIDA BINTI KASRI AND AMNAN HANANI BINTI BADRUDDIN

9 Housing Redevelopment Schemes (HRS): Islamic Green Finance Perspective

AHMAD KHALIQ

10 Blockchain and Cryptocurrency Ecosystem: Balancing Innovation and Islamic Ethics for Sustainable Finance

MOHAMED ASLAM AKBAR, ANAZTASIA NATASHA MUHAMAD RAMLAN, ANWAR ALLAH PITCHAY, AND HAIRUL AZLAN ANNUAR

PART III Islamic Green Finance and Its Impact Assessments

11 Impact of Corporate Sustainability on Financial Performance: Insights From Malaysian Green Banks

RACHEL YEOW TZE YING, SHAKIL AHAMMED, MOSHARROF HOSEN, HASSANUDIN MOHD THAS THAKER, AND FARHAD TAGHIZADEH-HESARY

12 Relational Ramifications Between Political Factors and Sukuk in Promoting Sustainable Forest Management

MILHATUN NISA AND M. LUTHFI HAMIDI

13 Islamic Green Finance Risk Assessment and Mitigation for Banks in Pakistan

ALIZA AIJAZ, NOOR FATIMA ANWAR, AND MAHA QASIM

14 The Role of Islamic Stock Market in Filling the Green Finance Gap in Indonesia

DWITA SAKUNTALA, M. SHABRI ABD. MAJID, A. ALIASUDDIN, AND S. SURIANI

15 Online Sustainability Disclosures of Top Islamic Higher Education Institutions

RATNA MULYANY, ARIF RAHMANSYAH, SARA YULIS, HAFAS FURQANI, BAKHTIAR BIN ALRAZI, DAYANA JALALUDIN, AND DAYANA JALALUDIN ZURAIDA

16 Mitigating Financed Emissions in Financial Institutions through Islamic and Green Finance

SAHEED OLANREWAJU ISSA, ABDULKADRI TOYIN ALABI, AND ABDULBAKI TENIOLA UBANDAWAKI

17 Global Green Bond and Sukuk Washing: Incentivising Bad Behavior

ZIYAAD MAHOMED AND SHAMSHER MOHAMAD

18 Bridging Biodiversity, Sustainability, and Social Impact With Sharia Insurance

NUR HALIMATUS SAKDIYAH

PART IV Sustainability in Green Islamic Finance: A Closer Look at Selected Countries’ Experience

19 A Closer Look at Indonesia’s Experience in Developing Green Sukuk

MUHAMMAD IQBAL BALATIVE, ERI HARIYANTO, ATHIUS SHOLIKHAH, AND RICKY GIGIH PRAYOGA

20 Sukuk and Sustainability: Exploring Green Financial Instruments and the Transition to Low-Carbon Economies

HAZIK MOHAMED

21 Towards a Sustainable Future: Evaluating Green Sukuk in Indonesia and the UAE

MAYA PUSPA RAHMAN, KHAIRUNNISA MUSARI, NUN MAZIYYAH MAHSYAR, AND NURCAN KILLINC-ATA

22 Green Waqf and Sustainable Development: Cases in Malaysia and Indonesia

JARITA DUASA AND MISBAHUL MUNIR