1
IJNI: International Journal of Nusantara Islam Vol.
No.
: 1-14
DOI: https://doi.
org/10.
15575/ijni.
ISSN : 2355-651X
Integration of Sharia Economy.
Green Economy, and Sustainable Development Goals Dede Aji Mardani1*.
Irwan Fauzy Ridwan2.
Imas Siti Masuroh3 Institut Agama Islam Tasikmalaya.
Indonesia, 3Universitas Pendidikan Indonesia Corresponding Author.
Email: dedeaji.
m@gmail.
Received: December 6, 2025.
Revised: December 25, 2025.
Accepted: December 27, 2025.
Published: January 3, 2026 Abstract: This study analyzes the integration of sharia economics, green economy, and the Sustainable Development Goals (SDG.
in strengthening the sustainable development model in Indonesia.
Using a qualitative approach through in-depth interviews, field observations, and document analysis, this study found that sharia principles such as justice, balance, and benefit are aligned with the green economy agenda that emphasizes resource efficiency and environmental protection.
The findings indicate that the implementation of Sharia financial instruments, such as productive zakat, green waqf, and green sukuk, significantly strengthens the funding of sustainable development projects and increases community participation.
The coherence between the values of maqasid al-shariah and the SDGs targets makes sharia economics an effective ethical platform in the transition to low-carbon This study concludes that Sharia-green integration is a strategic approach to achieving inclusive and resilient development, although challenges remain, including limited regulations, inadequate institutional capacity, and limited public understanding.
Recommendations for further research include the use of mixed methods, expanding the study to the halal industry sector, and developing an integrative theoretical framework based on maqasid and SDGs indicators.
Keywords: Sharia Economy.
Green Economy.
Sustainable Development.
Maqasid Al-Shariah.
Islamic Social Finance.
Introduction The issue of sustainable development has received greater attention since the introduction of the Sustainable Development Goals (SDG.
in 2015 as a global agenda.
The complexity of global challenges, including climate change, extreme poverty, social inequality, and environmental degradation, demands a development approach that focuses not only on short-term economic growth but also emphasizes social justice, environmental preservation, and ethical governance.
In this context.
Islamic economics has emerged as an alternative economic system that aligns both philosophically and normatively with the principles of sustainable development (Mardani et al.
Islamic economics emphasizes the values of justice, balance, welfare, and sustainability, reflected in the principles of the maqasid .
rotection of religion, life, intellect, offspring, and The five main objectives of the maqasid .
rotection of religion, life, intellect, progeny, and propert.
are directly relevant to the economic, social, and environmental pillars promoted in the SDGs (Gulzar et al.
, 2.
Thus, the application of Islamic principles in the context of sustainable development offers a comprehensive framework for integrating economic growth, social welfare, and ecological sustainability.
Sharia economics not only functions as an ethical system but also provides Mardani et al.
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a normative and practical basis for development policies and programs that align with global goals, encouraging the achievement of the SDGs in a more inclusive, equitable, and sustainable manner.
The principles of Islamic economics, including the prohibition of usury .
, gharar, and maysir .
, as well as an emphasis on productive and ethical economic activity, provide a solid normative foundation for achieving equitable and sustainable development.
This approach emphasizes the importance of balancing economic growth, social justice, and environmental preservation, ensuring that all economic activities pursue not only profit but also long-term social and ecological impacts.
In addition to these basic principles, various Islamic financial instruments play a strategic role in supporting the sustainable development agenda.
Zakat and productive waqf, for example, can be directed to finance poverty alleviation programs, education, health, and ecologically sound environmental projects.
Green sukuk .
reen suku.
provides a financing mechanism that allows governments and private institutions to channel funds for clean energy projects, climate change mitigation, and other sustainability initiatives.
Meanwhile.
Islamic microfinance can empower small and medium-sized enterprises while encouraging ethical and environmentally friendly business practices (Chapra, 2.
With this combination of normative principles and financial instruments.
Islamic economics not only contributes to economic stability and societal wellbeing but also serves as an effective framework for implementing sustainable development goals at the national and global levels.
This approach demonstrates that Islamic economics can be a realistic and sustainable alternative to addressing modern development challenges.
Although the conceptual relationship between Islamic economics and sustainable development has been widely studied, empirical evidence regarding its application in the field remains very limited.
Most previous studies have focused on normative and theoretical discussions, resulting in underdevelopment of studies exploring the actual influence of Islamic economic instruments on environmentally friendly behavior in society and their contribution to achieving the SDGs.
A research gap remains that needs to be filled to understand how Islamic values, mechanisms, and instruments truly function in driving changes to more sustainable economic practices.
Several important questions arise from this research gap (Karim.
First, to what extent are Islamic principles capable of motivating communities and businesses to implement green economic practices in their daily activities? Second, do Islamic financial products and instruments, such as zakat, productive waqf, or Islamic financing, significantly contribute to the achievement of SDG indicators in various sectors? Third, how can local governments.
Islamic financial institutions, and communities collaborate to develop a model that integrates Islamic economics with the green economy agenda? These questions provide an important foundation for further research to strengthen the empirical evidence, which has been minimal so far.
Indonesia is a highly strategic context for examining the interconnectedness of Islamic economics, the green economy, and the sustainable development agenda.
As the world's most populous Muslim country, with a strong commitment to implementing the SDGs.
Indonesia has launched various initiatives reflecting these integrative efforts.
Among the most prominent programs are the government's issuance of green sukuk (Islamic bond.
, the utilization of productive waqf for environmental conservation, and various zakat-based empowerment programs and Islamic microfinance aimed at reducing poverty and improving welfare.
While these initiatives demonstrate a progressive policy direction, empirical evaluation of their effectiveness remains very limited.
particular, the relationship between Islamic economic instruments and the achievement of SDG indicators has not been comprehensively measured, thus hindering a thorough understanding of the actual impact of these programs (Bank Indonesia, 2.
This study aims to bridge this gap by offering a data-driven analysis of how the integration of Islamic economics and the green economy contributes to the realization of the SDGs in Indonesia (Mardani, 2.
Through a mixed-methods approach, this study seeks to provide a more comprehensive empirical picture of the dynamics, challenges, and potential synergies between these three dimensions.
Islamic economics is rooted in fundamental values such as justice, balance, and welfare, all of which aim to build a sustainable and inclusive socio-economic system.
This ethical framework positions sustainability as an inherent part of economic activity, rather than simply an added concept.
Key principles, including the prohibition of riba .
, gharar, and maysir .
, serve as regulatory instruments that prevent the emergence of exploitative, speculative, or excessively uncertain economic practices.
Thus, these mechanisms strive to ensure that economic activity is conducted fairly, transparently, and does not create structural inequalities.
By limiting harmful Mardani et al.
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practices and emphasizing more equitable distribution.
Islamic economics strives to create an ecosystem that supports the welfare of the wider community.
Furthermore, concepts such as profitsharing, social responsibility, and a preference for the real sector reinforce Islamic economics' orientation toward long-term stability and sustainability.
These values make Islamic economics relevant in the context of sustainable development, as it prioritizes not only economic profit but also maintains social justice and environmental balance as part of its primary objectives (Chapra, 2.
Within the framework of sustainable development, the values underlying Islamic economics strongly align with the principles of sustainability, which emphasize ethical, inclusive, and environmentally friendly economic governance.
The core tenets of Islamic economics are not only oriented toward stability and balance but also encompass a moral dimension that fosters a just development system.
Islamic economics has the inherent capacity to deliver transformative development, particularly through social financial instruments such as zakat, infaq, sedekah, and waqf, which strengthen social solidarity and reduce inequalities.
Beyond the role of social financial instruments, the principles of maqasid sharia provide a philosophical foundation aligned with global development goals.
The primary objectives of maqasid sharia, such as protection of life .
ifz al-naf.
, protection of reason .
ifz al-aq.
, and protection of wealth .
ifz al-ma.
, share a common orientation with several pillars of the SDGs, including poverty reduction, expanding access to education, and inclusive and sustainable economic growth (Gulzar et al.
, 2.
This alignment demonstrates that Islamic economics is not only compatible with the SDGs agenda, but can also provide an alternative perspective that is more rooted in humanitarian values and social balance.
Maqasid sharia can serve as an ethical compass, ensuring that development is not solely focused on improving economic indicators.
Instead, the framework emphasizes that development success must be measured through improvements in the overall quality of human life, including environmental protection and the well-being of future generations.
Thus, sharia economics offers a more holistic development paradigm, capable of balancing material, social, and ecological objectives in the transformation process toward sustainability.
Method This research employed a qualitative approach, utilising an exploratory case study design, to comprehensively investigate the interconnection and implementation of Islamic economic principles, the green economy concept, and the Sustainable Development Goals (SDG.
agenda within the Indonesian context.
The exploration focused on understanding the conceptual relationships, field practices, and policy dynamics that shape the integration of these three areas (Yin, 2.
The research was conducted in three regions selected to represent the diversity of sustainable economic applications based on Islamic values.
Tasikmalaya City was chosen as the first location because it has a strong, developing Islamic economic ecosystem at the community level.
Bandung Regency was the second location because this region has shown significant development in green economic practices, driven by MSMEs and supported by Islamic financing.
DKI Jakarta was chosen as the third context because it is the center of national policy and where various SDGs programs and indicators are formulated and implemented at a macro scale.
The entire data collection process was carried out between January and June 2025.
The research population comprised three main groups: government officials.
Islamic economic institutions, and community groups, including MSMEs.
From this population, the researcher selected a sample of 15 informants using a purposive sampling technique, with five individuals from each This strategy was chosen to obtain in-depth and relevant narratives that could more accurately describe the integration of Islamic values, the green economy, and the achievement of the SDGs (Creswell, 2.
Data were obtained using semi-structured interviews to explore informants' perspectives in a free but focused manner, participant observation to capture actual behavior and socio-economic practices in the field, and documentation studies to strengthen the findings through written sources, such as policy reports, institutional documents, and related publications.
The main focus of the analysis includes understanding the maqashid sharia as a principal framework, green economic patterns and behavior at the community and institutional levels, the achievement of relevant SDGs .
specially SDGs 1, 8, 11, 12, and .
, and collaboration patterns between government institutions, the Islamic financial sector, and the community (Miles et al.
, 2.
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Data analysis was conducted using the thematic coding method, assisted by NVivo software to systematically map key themes (Braud et al.
, 1.
The reliability of the analysis results was strengthened through triangulation of sources, both between informants, between research locations, and between data collection techniques.
The study also implemented credibility procedures such as member checking by asking informants for confirmation of the researcher's interpretations, as well as an audit trail to transparently document the entire analysis process.
The entire validity and reliability process was guided by the criteria of Lincoln and Guba, so that this study produced findings that were trustworthy, rich in context, and able to provide an in-depth picture of how sharia values interact with the sustainable development agenda in Indonesia (Lincoln & Guba, 1.
This approach allows for a more complete understanding of the dynamics of the integration of sharia economics, green economic practices, and the implementation of the SDGs as the foundation for ethical, inclusive, and sustainable development.
Results and Discussion The green economy is understood as an economic approach that aims to encourage growth without sacrificing environmental sustainability.
This model emphasizes efforts to reduce ecological impacts, increase the efficiency of natural resource utilization, and ensure social justice in the development process.
Within this framework, economic activities are directed toward generating added value while minimizing environmental damage and long-term risks that could disrupt ecological stability and societal well-being.
One key aspect of the green economy concept is the use of clean, low-emission, environmentally friendly Furthermore, this paradigm encourages more responsible consumption behavior, both by individuals and the industrial sector, by emphasizing waste reduction, material reuse, and strengthening the circular economy.
Sustainable natural resource management is also a key principle, encompassing ecosystem protection, energy conservation, and the application of green technologies that support longterm efficiency and sustainability.
Thus, the green economy offers a development framework that focuses not only on economic growth but also on environmental preservation and the equitable distribution of development benefits across all levels of society (UNESCO, 2.
In the context of Muslim-majority countries, the concept of a green economy has significant potential for development because it aligns with Islamic teachings regarding khalifah fil ardh, the human mandate to protect and manage the earth responsibly.
Nugroho and Huda's .
findings indicate that Muslim communities tend to exhibit more positive ecological behavior when environmental issues are linked to religious values.
This provides a strong foundation that combining Islamic principles with green economic practices can be more effective in promoting environmental awareness and strengthening climate change mitigation efforts, especially at the grassroots level.
One concrete example of this integration is the use of green sukuk instruments, which illustrate the synergy between Islamic financing mechanisms and environmental sustainability goals.
Indonesia is a pioneer in issuing green sukuk internationally, while demonstrating a strong commitment to financing environmentally friendly projects (Farhana et al.
, 2.
Through this instrument, the government has successfully channeled funds to support various strategic programs, such as renewable energy development, increased energy efficiency, and forest conservation.
This success confirms that Islamic values can be a significant driver in strengthening the green economy and sustainable development agenda.
The International Institute of Islamic Thought .
T) .
emphasized that there is significant convergence between the Sustainable Development Goals (SDG.
framework and the principles of maqasid sharia.
Both share a focus on poverty alleviation, expanding access to education, and maintaining environmental sustainability.
In the context of implementation.
Islamic financial institutions play a crucial role through microfinance programs that can accelerate the achievement of SDG 1 on poverty alleviation and SDG 8 on decent work and more inclusive economic growth.
Furthermore, the development of productive waqf .
opens up significant opportunities to support various social development needs.
This scheme enables the provision of healthcare, education, and renewable energy projects, thus contributing directly to the achievement of SDG 3 (Healt.
SDG 4 (Quality Educatio.
, and SDG 7 (Clean and Affordable Energ.
(Rusmana, 2.
This significant potential demonstrates that Islamic economic instruments can have a tangible impact on realizing the global sustainable development agenda.
However, empirical studies specifically examining the relationship between Islamic economic practices and SDG achievement are still Mardani et al.
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Most studies emphasize theoretical or normative discussions, thus failing to describe the extent to which Islamic instruments contribute measurably to SDG indicators.
Therefore, more indepth, data-driven research is needed to understand the effectiveness of Islamic economic integration in comprehensively strengthening the sustainable development agenda.
(Hassan, 2.
Therefore, empirical research is needed to answer whether the integration of Islamic values influences community green behavior and increases the effectiveness of sustainable development programs.
Empirical Relationship between Islamic Economics and Green Economic Behavior Several recent studies have shown that religiosity.
Islamic ethical principles, and adherence to Sharia values play a significant role in shaping people's ecological behavior.
Rahman and Aziz .
revealed that religious orientation in Islam can encourage green behaviors, such as reducing waste production, utilizing renewable energy, and participating in nature conservation programs.
The values of ecological justice and the prohibition against causing damage to the earth .
fsad fil ard.
serve as strong moral drivers for Muslims to be more proactive in protecting the environment.
Furthermore, the use of Sharia-based microfinance has been shown to have a dual impact.
On the one hand, this instrument helps strengthen community economic resilience through business capital support.
on the other hand, this financing encourages the emergence of more environmentally friendly business Sharia-based financial schemes, which emphasize justice, sustainability, and balance, are considered capable of directing community economic patterns toward a more ecologically responsible direction (Dida et al.
, 2.
These findings demonstrate that Islamic economics not only has a normative basis for supporting a green economy, but also provides an empirical mechanism that can change people's economic behavior towards more sustainable practices that support environmental sustainability.
The research also shows that efforts towards a green economy based on Sharia principles are largely determined by institutional readiness, particularly in terms of human resource quality and risk management capabilities.
Several sources from Sharia financial institutions stated that their internal capacity to conduct environmental risk assessments is still far from optimal.
Many financing analysts lack an adequate understanding of environmental indicators such as carbon footprints, greenhouse gas emissions, energy efficiency levels, and waste management systems.
This limited competency directly impacts the project evaluation process.
Without sufficient technical knowledge, assessments of green financing proposals are less accurate and even risk approving projects that do not truly meet environmentally friendly criteria.
The transition to a green financing scheme requires structured human resource capacity building (Mei et al.
, 2.
In-depth training, technical certification, and collaboration with environmental agencies and research institutions are crucial factors in strengthening assessment quality and ensuring that Sharia financial institutions are able to effectively carry out sustainable financing functions.
These findings underscore that institutional strength is key to the successful integration of a green economy with Sharia principles.
Differences in perception regarding the meaning of "green" in Islamic financing are evident among regulators, financial institutions, and the public.
For some interviewees, the term "green financing" is still limited to support for renewable energy projects, even though the scope of the green economy is much broader.
This concept encompasses sustainable agricultural practices, low-emission transportation systems, industrial activities that minimize carbon footprints, circular economy-based waste management, and technology development that prioritizes energy efficiency and environmental These differing perspectives ultimately result in a misalignment between policy formulation and implementation.
For example, local governments often focus strictly on ecological aspects, while Islamic financial institutions must consider business feasibility, profitability, and potential financing risks.
Therefore, this study emphasizes the need for more systematic and mutually agreed-upon guidelines for defining green financing to avoid ambiguity in its implementation.
The effectiveness of the transition to a green economy depends heavily on clear, shared operational definitions (Arislan & Mashuri Toha, 2.
With measurable standards, the risk of greenwashing can be minimized, and collaboration between stakeholders can be more harmonious and targeted.
From a societal perspective, this study demonstrates that religiosity has a strong influence on shaping adherence to green economic practices.
Several community informants reported that environmental initiatives linked to religious teachings, such as waste donation programs, energysaving initiatives in mosques, and waqf activities aimed at environmental preservation, tend to be Mardani et al.
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more accepted and implemented voluntarily by residents.
This finding indicates that using Islamic values as the basis for environmental programs can significantly increase public participation, particularly at the grassroots level.
These findings align with research by Saeed and Fareed, which demonstrated that spiritual encouragement can strengthen the motivation of individuals and communities to adopt sustainable lifestyles.
In other words, a religious values-based approach can broaden the impact of environmental programs because it aligns with community identity and beliefs (Ihsan, 2.
Therefore.
Islamic economics has a strategic advantage over conventional development approaches.
This system emphasizes not only economic aspects but also integrates spiritual, ethical, and social dimensions as a foundation for behavioral change.
This approach enhances the effectiveness of Islamic economics in supporting the achievement of Sustainable Development Goals (SDG.
by fostering community awareness, discipline, and participation.
Integration of Islamic Economics with the Sustainable Development Goals (SDG.
In implementing the Sustainable Development Goals (SDG.
, this study found that several goals are more compatible with Islamic economic principles.
Several targets, such as SDG 1 on poverty reduction.
SDG 7 on clean and affordable energy.
SDG 12 on responsible consumption and production patterns, and SDG 13 on climate change action, are considered the easiest to integrate.
One concrete example is the practice of productive zakat .
lms givin.
Many zakat management institutions have begun designing economic empowerment programs for those entitled to receive alms that are not only oriented towards increasing income but also consider environmental Zakat collectors .
akat collector.
revealed that they have applied environmental filtering principles in assessing program eligibility (Fahmi, 2.
Thus, only initiatives that meet environmentally friendly criteria such as clean energy businesses, waste reduction, or sustainable production are granted financial support.
This innovation demonstrates that Islamic economics has great potential as a supporting mechanism for achieving the SDGs more comprehensively.
The synergy between Islamic social finance instruments and an ecological orientation allows for the creation of a development model that integrates economic sustainability, social welfare, and environmental protection.
This approach strengthens the belief that the integration of Islamic economics with the SDGs can accelerate the realization of values-based sustainable development.
The findings of this study align with the IsDB report, which states that Islamic social finance instruments have significant capacity to promote the achievement of various SDG targets in Muslimmajority countries.
At the policy level, this study emphasizes that the integration of the Islamic economy and the green economy cannot be optimal without more visionary regulatory support.
One important input from informants is the urgency of developing a green taxonomy specifically designed for the Islamic finance sector.
To date.
Islamic financial institutions still rely on general guidelines that are not fully aligned with Sharia principles.
For example, several environmentally oriented projects, such as microhydro development or organic farming development, involve geological and market risks that should be analyzed using a risk-sharing approach, rather than risk transfer, as is the practice in conventional finance (Musthofa & Nafidzi, 2.
This situation demonstrates the need for an assessment framework that combines Sharia-compliant screening with environmental screening to ensure that the financing process truly reflects both principles.
This recommendation strengthens Ahmad and Russo's argument that integrating sustainability into the Islamic economy requires a regulatory framework with dual compliance, namely adhering to Islamic values while meeting environmental sustainability standards to ensure effective and credible implementation of green development.
From a scientific perspective, this research makes a significant contribution in clarifying the link between Maqasid al-Shariah and the SDGs.
The academics who participated in the study emphasized that maqasid in its modern formulation strongly aligns with the basic principles of the SDGs, as both prioritize the protection of life, social justice, and environmental balance.
However, the research findings indicate that this relationship is not merely normative but also has practical consequences for policy formulation and the development of Islamic financial products.
According to some academics, maqasid can function as a "normative compass" for determining a project's eligibility for Islamic financing, particularly when the project has long-term ecological and social implications (Miswanto & Tasrif, 2.
In other words, maqasid can play a role in assessing the sustainability of an initiative, thus serving not only as an ethical concept but also as an evaluative framework for development practice.
This view aligns with contemporary maqasid concepts, which Mardani et al.
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emphasize that maqasid should be understood as a strategic foundation that can support inclusive and sustainability-oriented development.
Through this perspective, maqasid offers theoretical and methodological contributions to strengthening Islamic economics integrated with the global agenda of sustainable development.
The integration of Islamic economics, the green economy, and the SDGs agenda is a development approach that not only has strong prospects but is also essential in addressing global issues such as the climate crisis, social injustice, and environmental degradation.
Stakeholders believe that when supportive regulations, institutional capacity, and public literacy are simultaneously strengthened, a development model based on Islamic principles has the potential to become a strategic option in driving transformation towards a more just, prosperous, and sustainable society.
The empirical results of this study provide broad practical benefits for the Islamic finance industry, public policymakers, and grassroots communities.
For Islamic financial institutions, these findings emphasize the importance of financing aligned with sustainable values.
For policymakers, this research provides a basis for formulating regulations that are more responsive to the needs of a Shariabased green economy (Inamullah & Lestari, 2.
For the community, this research demonstrates that religious values can strengthen participation in environmentally friendly activities.
Academically, this research enriches the literature that examines the relationship between religion, economics, and sustainability, while also opening up opportunities for further research on the implementation of sharia development integrated with the SDGs framework.
This research also shows that the transition to a Sharia-based green economy is highly dependent on strong institutional capacity, particularly in terms of human resource quality and risk management.
Several informants from Islamic financial institutions stated that their internal capabilities in conducting environmental risk assessments are still limited (Kemdikbud, 2.
Many financing analysts lack understanding of key indicators such as carbon footprint, greenhouse gas emissions, energy efficiency, and waste management.
This lack of competency often results in inaccurate green project evaluations and the potential for approving financing for activities that are actually less environmentally friendly.
This situation reinforces the findings of research by El-Khatib and Salim, which emphasize that a successful transition to green financing requires structured human resource capacity building.
These efforts include technical training on environmental parameters, enhanced analytical skills, and strengthened cross-sector collaboration with environmental institutions and authorities (Sulistyowati & Anam, 2.
Therefore, adequate institutional capacity is a crucial prerequisite for Islamic financial institutions to carry out their environmental screening function appropriately and truly support the achievement of a green economy in accordance with sustainability principles.
This study also shows that at the community level, religious aspects have a significant influence on increasing compliance with green economic practices.
Informants from local communities revealed that programs packaged with religious values, such as waste almsgiving, energy efficiency initiatives in mosques, and waqf initiatives for environmental preservation, are more easily accepted and followed than environmental programs socialized using technical language.
This finding indicates that the inclusion of Islamic spirituality in environmental agendas can more effectively increase community participation.
These results align with research by Saeed and Fareed, who emphasized that spiritual values can strengthen individual motivation to adopt sustainable behaviors.
The integration of religious values not only strengthens ecological awareness but also creates a sense of moral responsibility in protecting the environment (Al Hadi, 2.
Therefore.
Islamic economics has a strategic advantage over conventional development approaches, as it is able to harmoniously integrate spiritual, social, and ecological dimensions.
The combination of these three aspects is a crucial driver in creating more consistent and sustainable behavioral change at the community level.
Within the framework of SDG implementation, this study found that several goals are more easily aligned with Islamic economic principles, particularly SDG 1 on poverty alleviation.
SDG 7 on clean energy.
SDG 12 on sustainable consumption and production patterns, and SDG 13, which focuses on climate change mitigation.
One example is the productive zakat program, which is now not only aimed at reducing poverty but also incorporates environmental sustainability considerations.
Zakat administrators explained that they have begun applying the principle of environmental filtering in selecting empowerment programs, ensuring that only environmentally friendly initiatives are This approach suggests that Islamic social finance instruments can be optimized as a tool for achieving the SDGs more systematically through a combination of social funding and ecological Mardani et al.
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initiatives (Kartina et al.
, 2.
These findings align with the IsDB report, which asserts that Islamic social finance has significant capacity to accelerate the realization of various SDG targets, particularly in countries with significant Muslim populations.
Thus.
Islamic economics is not only compatible with the global development agenda, but also offers a more ethical, inclusive, and environmentally sustainable implementation model.
At the policy level, this research demonstrates that the successful integration of the Islamic economy and the green economy depends heavily on more progressive and targeted regulations.
One key recommendation from the informants is the need to develop a green taxonomy specifically tailored to the Islamic finance sector.
Currently, many Islamic financial institutions still rely on general guidelines that do not fully consider specific Islamic principles (Bell, 2.
For example, some environmentally friendly projects, such as small-scale hydropower plants and organic farming businesses, involve geological and market risks that should be analyzed using risk-sharing mechanisms, rather than risk transfer, as is the practice in the conventional financial system.
This situation indicates that existing regulatory guidelines are insufficient to ensure both Sharia compliance and ecological sustainability.
The informants emphasized the need for a regulatory framework that integrates Sharia-compliant screening with environmental screening, so that every project financed can meet Sharia standards while remaining environmentally friendly.
Integrating Islamic economics with the sustainability agenda requires dual compliance regulations, namely Sharia compliance and environmental compliance, as a foundation to ensure the effectiveness and credibility of the implementation of Sharia-based green finance (Setiyowati et al.
, 2.
From an academic perspective, this study provides a strong theoretical contribution in mapping the relationship between Maqasid al-Shariah and the SDGs.
Academic informants stated that modern maqasid naturally aligns with the principles of the SDGs, as both emphasize the protection of life, social justice, and ecological balance.
However, this study found that this integration is not only a normative alignment but also has clear operational implications for the formulation of Islamic financial policies and products.
Some academics have suggested that maqasid can serve as a "normative compass" in assessing whether a project is eligible for Islamic financing, especially if the project has long-term ecological and social impacts (Arrazi, 2.
Thus, maqasid functions not only as an ethical concept but also as a framework for evaluating sustainability.
The importance of maqasid as a supporting framework for inclusive and sustainable development is evident.
Finally, this study confirms that the integration of Islamic economics, the green economy, and the SDGs is a future approach that is not only realistic but also highly relevant in addressing global challenges such as climate change, social inequality, and environmental degradation.
Stakeholders believe that if the regulatory ecosystem, institutional capacity, and public literacy are simultaneously strengthened, a Sharia-based development model can become a key alternative in driving transformation toward a just, prosperous, and sustainable society (Marianingsih, 2.
These empirical findings provide significant practical contributions to the Islamic finance sector, policymakers, and local communities, while also enriching academic studies on the relationship between religion, economics, and sustainability.
The integration of Islamic economic principles and sustainable development is also significant at the institutional level, particularly in the management of Islamic companies and financial This research shows that institutions implementing Sharia-based environmental governance are better able to adapt to changing market dynamics and environmental regulations.
This adaptive capacity arises because Sharia governance requires a rigorous screening process regarding the impact of economic activities on the environment, so that every policy and investment is more selective and directed towards achieving long-term sustainability.
Sharia-based governance encourages responsible decision-making over the long term, particularly in the context of a green economy (Muarif, 2.
Thus.
Sharia serves not only as a system of ethical norms or rules but also as a strategic platform guiding the transformation of the industrial sector toward more environmentally friendly practices.
This approach enables Islamic financial institutions and businesses to balance economic goals with social and ecological responsibilities, while strengthening their position in promoting comprehensive sustainable development.
This research shows that the integration of sharia principles and a green economy is more effective when SDGs management is carried out through collaboration between local governments, businesses, and communities.
This collaboration strengthens the role of the sharia economy as a system that emphasizes collective welfare, rather than solely profit-oriented (Rohmah, 2.
Field Mardani et al.
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data shows that waste-based alms initiatives, green financing, and circular economy training programs have successfully increased community participation in sustainability activities while supporting household economic independence.
Community involvement is crucial for the successful implementation of the SDGs, particularly in the sustainable consumption and production sectors.
This multi-stakeholder collaboration enables the simultaneous alignment of environmental, social, and economic goals (Permana & Eka Wahyu, 2.
Thus, the integration of sharia values into sustainable development not only impacts environmental quality but also opens up opportunities for more inclusive economic access for the wider community.
This approach emphasizes that Islamic economics can be a strategic instrument for realizing just, prosperous, and sustainable development, while simultaneously harmonizing the interests of individuals, communities, and the environment within the SDGs framework.
In addition to its social impact, the integration of sharia economics and the green economy also significantly impacts economic efficiency at both the micro and macro levels.
Businesses that implement sharia principles, such as avoiding israf .
, encouraging efficient resource utilization, and emphasizing transparency in production processes, tend to be more resilient to market changes and Field research shows that sharia-compliant MSMEs that adopt environmentally friendly practices are able to reduce long-term production costs.
This is achieved through the use of renewable energy, waste reduction, and optimization of local raw materials (Hidayati et al.
, 2.
Thus, production strategies aligned with sharia principles and environmental sustainability provide tangible operational A sharia-based green economy can reduce operational volatility through more efficient, ethical, and responsible production systems.
In other words, the integration of sharia economics and green economy practices not only creates ecological sustainability value but also strengthens long-term economic stability for businesses.
This approach demonstrates that the synergy between ethical principles and environmental sustainability can yield dual benefits: promoting environmental conservation while increasing the resilience and economic efficiency of the business sector.
Implementation of Sharia Financial Products to Support the Green Economy From a financing perspective, the link between Islamic economics and the sustainable development agenda is increasingly evident through various Islamic social finance instruments.
Products such as productive waqf, zakat .
directed towards environmentally-based empowerment programs, and green sukuk (Islamic bond.
are strategic tools for supporting sustainability-oriented Interviews revealed that green sukuk provides opportunities for local governments and community organizations to obtain stable and sustainable funding sources.
These funds can be allocated to climate change risk mitigation projects and adaptation programs that strengthen environmental and social resilience (Musari, 2.
Thus, green sukuk is not merely a financial instrument, but also a mechanism that links compliance with Sharia principles to the implementation of sustainable Green sukuk has become the fastest-growing Islamic financial instrument in the past five Its increasing popularity reflects the growing need for alternative financing that is not only Shariacompliant but also supports the achievement of the Sustainable Development Goals (SDG.
Specifically, green sukuk contributes to the clean energy sector, climate change mitigation efforts, and sustainable development initiatives.
This emphasizes the role of Islamic finance as a platform capable of simultaneously uniting economic, social, and environmental goals.
The integration of sharia principles and sustainability through green sukuk also demonstrates how financial institutions can innovate in designing products with a dual impact.
These not only meet Sharia compliance requirements but also emphasize ecological sustainability.
Productive waqf and environmental zakat, for example, are examples of instruments that utilize social funds for environmentally friendly activities and community empowerment.
This approach enables synergy between socio-economic goals and environmental conservation, while strengthening the legitimacy and sustainability of development programs (Grahesti et al.
, 2.
Thus, the link between sharia economics and sustainable development through social financial instruments, particularly green sukuk, demonstrates that Islamic ethical principles can be translated into concrete and impactful practices.
This strategy not only provides a reliable source of funding but also supports the achievement of global targets related to clean energy, climate change mitigation, and inclusive development.
The successful implementation of these instruments confirms that the sharia economy can be a key pillar in building a sustainable, equitable, and productive financial ecosystem in the modern era.
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With global investor interest in sustainable and ethical financial instruments growing, integrating Islamic economic principles with the Sustainable Development Goals (SDG.
agenda presents a significant strategic opportunity for Indonesia.
This approach not only confirms the relevance of Islamic economics as an ethical and moral foundation for financial activities, but also strengthens Indonesia's position as an international hub for Islamic finance.
Sharia-compliant instruments, such as sukuk, productive waqf, and empowerment-based zakat, are able to attract investors who prioritize sustainability, transparency, and social responsibility (Fakhiroh & Sumardi, 2.
Thus.
Islamic economics serves not only a financial function but also acts as a vehicle for promoting inclusive and sustainable development.
This integration emphasizes the dual role of Islamic economics: first, as a social instrument that promotes community welfare through equitable wealth distribution mechanisms, such as productive zakat programs, educational waqf, and community-based economic empowerment and second, as an attractive funding mechanism for domestic and international investors seeking ethical and environmentally sustainable financial products.
In this context.
Islamic economics has the potential to bridge the community's need for welfare with global demands for environmentally friendly and responsible business practices (Mukhid, 2.
The application of Sharia principles in financial instruments also concretely supports the achievement of the SDGs.
For example, green sukuk can be allocated to clean energy projects, climate change mitigation, and sustainable infrastructure development.
Meanwhile, productive zakat and waqf instruments provide direct socio-economic impacts through empowering poor communities and increasing local capacity, thereby supporting the goals of poverty alleviation, inclusive education, and environmental protection.
This approach reflects a harmonious synergy between Islamic ethics, global development goals, and national economic interests.
The integration of sharia economics and the SDGs provides dual added value: increasing Indonesia's attractiveness to global investors while strengthening the foundations of inclusive, equitable, and sustainable national development.
This strategy demonstrates that sharia economics can serve as a driving force for holistic socio-economic transformation, while also affirming Indonesia's commitment to implementing the global development agenda through ethical, responsible, and sustainable financial instruments (Habibullah & Hassan, 2.
The Role of Public Education and Literacy in Supporting the Implementation of a Green Economy This study also revealed variations in public understanding of the concept of sustainable Although most respondents expressed a positive attitude toward environmentally friendly practices, their understanding of the link between sustainability and sharia principles remained limited.
While the majority of respondents recognize that environmental protection is part of religious teachings, they do not yet fully understand how sharia values can be concretely applied within a green economy.
This partial awareness indicates the need for sustainability education and literacy based on Islamic Curriculum integration, combining sharia economics with sustainability principles, in both formal and non-formal education is crucial to enable the public to understand and apply sustainable practices more comprehensively (Rahmati, 2.
Therefore, increasing community capacity is a strategic factor in strengthening the implementation of the SDGs through a sharia approach.
These educational efforts not only increase ecological awareness but also equip the public with a practical understanding of how to incorporate ethical, social, and environmental principles into their everyday This approach is expected to be able to create active community participation in sustainable development that is in line with sharia values, so that a balance is achieved between social welfare, economic growth, and environmental preservation (Izzany, 2.
In the policy realm, this study confirms that the successful integration of the sharia economy and the green economy depends not only on community initiatives or business actors but is also greatly influenced by consistency and regulatory support from the government.
Conducive policies, such as providing tax incentives for green projects, halal-green certification, and the implementation of environmentally friendly production standards, are crucial factors in ensuring the sustainability of program implementation on the ground.
Public policies that combine sharia principles and the green economy not only drive economic transformation but also increase the competitiveness of the local industrial sector in the context of a global economy increasingly focused on sustainability (Hariyani et al.
, 2.
With regulations aligned with Sharia values and environmental principles, businesses can make more ethical, efficient, and sustainable investment and operational decisions.
Therefore, alignment between sharia principles, national policy direction, and SDG targets is a crucial Mardani et al.
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prerequisite for strengthening sustainable development governance.
Consistent and integrated policies enable the creation of an economic ecosystem that supports collective well-being, environmental protection, and the simultaneous achievement of global development goals.
This approach emphasizes that the role of public regulation is very strategic in ensuring the effectiveness of the implementation of a sustainable Islamic economy (Siregar, 2.
The integration of sharia economics, the green economy, and the SDGs can create a balanced development ecosystem, encompassing ethical, economic, social, and environmental dimensions This approach not only increases the effectiveness of sustainable program implementation but also provides a new perspective at the global level, emphasizing the crucial role of sharia principles in offering alternative development models that are more equitable, sustainable, and resilient to various challenges.
Empirical research findings suggest that when the values of maqasid al-sharia are applied within the SDGs framework, the development agenda becomes more holistic, focusing on human well-being.
This approach allows development to pursue more than just economic growth but also simultaneously address social and environmental sustainability (Rafik et , 2.
Thus, development programs aligned with sharia principles tend to be more responsive to dynamic ecological, social, and economic issues, including climate change, social inequality, and natural resource degradation.
Furthermore, this integration strengthens the argument that sharia economics is not merely an ethical system or norm but can also serve as a strategic framework for designing inclusive and sustainable policies, financial products, and development programs.
integrating the maqasid of sharia and the SDGs, development can be directed toward dual benefits:
improving societal welfare while preserving the environment.
This approach emphasizes the relevance of sharia as an ethical and operational foundation for more humane and sustainable global development (Davidi et al.
, 2.
Conclusion The integration of Islamic economics, the green economy, and the sustainable development goals (SDG.
is not only relevant but also strategic in addressing contemporary development challenges.
The core values of Islamic economics, such as justice, welfare, and sustainability, are proven to align with the principles of the green economy, which emphasize resource efficiency, emission reduction, and environmental protection.
This integration results in a development model that is more ethical, inclusive, and has long-term resilience compared to conventional development approaches.
Empirical findings suggest that MSMEs.
Islamic financial institutions, and local governments that incorporate Islamic values into green economic activities exhibit more stable performance, higher community engagement, and stronger environmental awareness.
Furthermore, this study confirms that Islamic financing mechanisms, such as productive zakat, green waqf, and green sukuk, make significant contributions to the financing of sustainable projects.
These instruments not only provide financial solutions but also strengthen distributive justice and collective welfare as mandated by the maqasid al-shariah.
This integration also demonstrates that the SDGs can be contextualized more flexibly and effectively when adapted through a Sharia normative framework that places ethical values as a pillar of development.
This research demonstrates that collaboration between government actors.
Sharia financial institutions, the private sector, and communities is a key factor in the successful transition to sustainable development.
When Sharia principles are applied to public policy, environmental governance, and financial mechanisms, the SDG agenda can be achieved more comprehensively and with long-term impact.
Thus, the integration of the Sharia economy, the green economy, and the SDGs is not merely an alternative, but a strategic foundation for building a more equitable, sustainable, and green future for development.
References