In the face of unprecedented global warming and escalating environmental crises, this book offers a comprehensive investigation into the ways Islamic financial principles can contribute to combating climate change. It delves into the significant potential of the Islamic finance industry and showcases its capacity for sustainable and ethical investment that aligns with the global climate change agenda.
The book meticulously discusses the role Islamic finance can play in developing low-carbon and climate-resilient infrastructure, providing readers with a rich blend of theoretical insights and practical methodologies. It underscores the harmony between Islamic ethical finance and ecological care, highlighting their joint role in funding renewable energy and fostering resilient communities. Through insightful case studies and analyses, it positions Islamic finance as a vital player in global climate initiatives. Introducing innovative instruments like green Sukuk and evaluating Waqf (endowment) for eco-projects, it critically reviews how Islamic financial institutions can further drive climate-positive investments, providing a framework of Islamic climate finance. It analyses the law and policies of Islamic finance governing climate action and puts forward a strategic action plan.
Aimed at scholars, researchers, and academics, this book is an invaluable resource for those seeking to understand and implement Islamic financial solutions in the battle against the global climate crisis. It also serves as an essential guide for policymakers and practitioners committed to steering financial practices towards more sustainable and globally beneficial outcomes, ultimately providing strategic knowledge and practical tools to mobilize resources effectively for the planet’s future.
Mohd Ma’Sum Billah is Senior Professor of Finance at the Islamic Economics Institute, King Abdul Aziz University (KAU), Kingdom of Saudi Arabia.
Razali Haron is Professor of Finance at the IIUM International Institute of Islamic Banking and Finance, International Islamic University, Malaysia (IIUM).
Rusni Hassan is Professor of Finance and the Dean at the IIUM International Institute of Islamic Banking and Finance, International Islamic University, Malaysia (IIUM).
Syed Marwan Mujahid Syed Azman is Assistant Professor of Finance at the IIUM International Institute of Islamic Banking and Finance, International Islamic University, Malaysia (IIUM).
Akhtarun Naba’ Billah is pursuing her LLB (Hons) at the Ahmad Ibrahim Kulliyyah of Laws (AIKOL), International Islamic University, Malaysia (IIUM), and is scheduled to complete her legal internship at the Office of the Chief Justice of Malaysia (Palace of Justice, Putrajaya, Malaysia) in 2025.
Table of Contents:
Introduction PART I World view of Islamic finance mind-set for climate action 1 World view of Islamic finance mind-set for climate action 2 Islamic world view towards a green economy 3 Maqasid al-Shariah, Islamic finance, and climate action 4 Environmental Waqf for climate action in the light of Maqasid al-‘Imran: (Hifz al-‘Imran or Hifz al-Bi’ah) PART II Islamic financial law and policies for climate action 5 Climate change through regulatory frameworks: how does Shariah matter? 6 Green financing policies in Malaysia: response from Islamic finance 7 Corruption and its implication on climate action: the role of Islamic ethics PART III Strategic action plan of Islamic finance for climate action 8 Islamic finance initiative for climate action 9 Islamic finance and climate mitigation 10 Environmental Waqf for climate action 11 Islamic finance and climate change resilience PART IV Role of Muslim governments towards climate action: regional case studies 12 Role of green Sukuk towards climate sustainability: cases in selected Muslim countries 13 Regional case studies: islamic finance for climate action and sustainability 14 Projects towards climate action: case of BRICS 15 GCC countries and their initiatives for climate action PART V Mobilizing Islamic finance for climate action: programming, instruments, and application 16 Islamic bank financing and renewable electricity production: international evidence 17 Blue Sukuk: islamic finance instrument to promote blue economy 18 Islamic finance instruments for climate actions PART VI Impact analysis of Islamic finance for climate action 19 Islamic finance risk analysis and climate change 20 The role of Microtakaful in building climate resilience for micro, small, and medium-sized enterprises (MSMEs): lessons for Malaysia 21 Impact analysis of Islamic bank financing for climate action
About the Author :
Mohd Ma’Sum Billah is Senior Professor of Finance at the Islamic Economics Institute, King Abdul Aziz University (KAU), Kingdom of Saudi Arabia.
Razali Haron is Professor of Finance at the IIUM International Institute of Islamic Banking and Finance, International Islamic University, Malaysia (IIUM).
Rusni Hassan is Professor of Finance and the Dean at the IIUM International Institute of Islamic Banking and Finance, International Islamic University, Malaysia (IIUM).
Syed Marwan Mujahid Syed Azman is Assistant Professor of Finance at the IIUM International Institute of Islamic Banking and Finance, International Islamic University, Malaysia (IIUM).
Akhtarun Naba’ Billah is pursuing with her LLB (Hons) at the Ahmad Ibrahim Kulliyyah of Laws (AIKOL), International Islamic University, Malaysia (IIUM) and she has completed her legal internship at the office of the Chief Justice of Malaysia (Palace of Justice, Putrajaya, Malaysia) in 2025.
