chapter  9
29 Pages

Islamic green finance

A new path to environmental protection and sustainable development
ByMarianella Piratti, Valentino Cattelan

This chapter looks at Islamic green finance as a significant market innovation both in the light of environmental sustainability and Shari’ah standards for Islamic financial institutions. To this aim, the work is divided into two parts. Part One outlines the Islamic tradition on environmental protection, its principles, precepts and key institutes. Part Two focuses on contemporary Islamic economics and finance. By reviewing the research agenda on Islamic economics, it remarks how green sukuk and awqaf can contribute to sustainable development, and suggests improvements in Shari’ah-compliance criteria for green economy objectives to be implemented in Islamic finance.