A Holistic Approach to Green Finance Within Maqasid Al-Sharia

Abstract

This paper explores the integration of green finance principles within the framework of Maqasid Al-Sharia (the objectives of Islamic law). It presents a comprehensive approach to aligning environmental sustainability with Islamic ethical and legal principles. The study examines the five fundamental objectives of Sharia—preservation of religion, life, intellect, lineage, and wealth—and demonstrates their relevance to contemporary environmental and financial challenges. By analyzing these principles, the paper proposes a holistic framework for green finance that is both Sharia-compliant and environmentally responsible. Key areas of focus include natural resource management, climate change mitigation, renewable energy investment, sustainable agriculture, and eco-friendly business practices. The research argues that the Maqasid Al-Sharia provides a robust ethical foundation for developing innovative financial products and services that address environmental concerns while adhering to Islamic principles. This approach not only fulfills religious obligations but also contributes to global efforts in combating climate change and promoting sustainable development. The study concludes by emphasizing the need for further research and practical implementation of these concepts in the Islamic finance industry to create a more sustainable and ethically-driven economic system.