Bridging Finance and Sustainability

Abstract

This research aims to investigate the role of Islamic financial institutions in supporting green finance and facilitating the transition to sustainable energy. With a focus on Sharia principles, such as the prohibition of riba and adherence to risk, profit, and loss sharing, Islamic financial institutions are considered ethical and socially responsible entities that have the potential to drive positive change in the global financial landscape. Through a layered methodology that includes an in-depth literature review, case studies of sustainable energy projects supported by Islamic finance, and analysis of regulatory frameworks, the research provides a holistic understanding of the dynamics taking place. The results highlight the unique creativity and innovation of Islamic financial institutions in supporting green finance, with a particular focus on financial instruments such as green sukuk and other financing products.