Role of Qawā’id Fiqhiyyah in Promoting Green Investment within Islamic Economics: Theoretical and Practical Frameworks

1. INTRODUCTION

Islamic economics combines economic activities with Islamic moral values. It has grown as a specialized area of knowledge from the larger Islamic corpus and has gained currency among various scholars in the Muslim world. Islamic economics is based on Shariah's principles and moral values, which advocate equity, fairness, and common good.¹ Some principles include the prohibition of interest (riba), the avoidance of excessive uncertainty (gharar), and the promotion of risk-sharing and ethical investment.² Qawā’id Fiqhiyyah is an important source of the ethical framework of Islamic economics. They guide the ethical principles of practice in economic-related activities so that economic practices do not deviate from Islamic morality. They assist in interpreting and applying theories of economics from an Islamic point of view, which, in turn, may contribute to the growth of the subject and its relevance to modern economics.³

Sustainable development is an important area of concern for eco-friendly economic approaches and policies, and the connection of economic prosperity with environmentalism is becoming increasingly understandable. In this context, sustainable development that seeks to foster economic progress without compromising the environment is one of the key goals.⁴ Islamic economics, which has ethical dimensions in its very fabric, makes a strong case for environmental sustainability through the responsible use of natural resources and other forms of development. This ethical aspect is important since regular economic models do not even consider the welfare of nature and non-human life or future generations; they target present societies only.⁵ The environmental economy seeks to integrate economic activities with social and environmental concerns. This model supports Sustainable Development Goals (SDGs), such as climate resilience, clean energy, responsible consumption, preservation of biodiversity, and so on.⁶

However, it is generally not enough to advocate for efficiency gains, such as waste minimization since, in some cases, these may cause more harm than good. To advance sustainability, explicit environmental principles, such as doing no harm to nature, minimizing environmental damage, and preserving ecosystem health are needed.⁷ As for the economic growth-environment quality loop, its intricate nature is illustrated by the Environmental Kuznets Curve (EKC). This provides that the economic growth tends to deteriorate the environment only up to a certain point, after which environmental quality improves.⁸ Additionally, teaching economics is paramount while fostering sustainable development. However, available teaching resources have often been inadequate in equipping the required knowledge and skills for sustainability.⁹ Therefore, it is prudent to amalgamate the ethical principles of Islamic economics with contemporary sustainable development strategies, thereby promoting development that benefits humanity and the environment.¹⁰

Previous studies pertinent to this research underscore the significance of Qawā’id Fiqhiyyah (Islamic legal maxims) in advancing green investment in Islamic economics. This emphasizes theoretical foundations and practical applications for environmental sustainability. Studies conducted by Al-Roubaie and Sarea (2019) in conjunction with Faisal et al. (2023) demonstrated how the principles of Islamic finance promote green investments, emphasizing environmental ethics and accountability. Belgacem (2023) and Siswantoro and Mahmud (2023) provided empirical insights into renewable energy and financial innovation, linking Shari’ah principles with environmental goals. Additionally, the studies conducted by Faizi (2024) and Haqqi and Mohiddin (2022) underscored the significance of Qawā’id Fiqhiyyah in incorporating Islamic ethics into sustainable finance. This ensured that investments conform to ecological conservation and regulatory standards. These studies confirm the ability of Islamic legal maxims to direct morally and environmentally responsible investments in Islamic economics.

The current study examined the application of Qawā’id Fiqhiyyah, or Islamic legal maxims, to promote the growth of green investments. Green investment refers to allocating capital towards projects and initiatives that enhance the environment including renewable energy, sustainable agriculture, and conservation efforts. Investments, regulated by the rules of ethics of Qawā’id Fiqhiyyah, must provide both economic advantages and environmentally sustainable benefits. The study also analyzed Qawā’id Fiqhiyyah from the perspective of green investment including its conceptual foundations and evolution. It pertains to understanding those rules and maxims related to ethical and economic conduct and their relevance to modern investment forms. The practical aspects of these principles were also studied, indicating how these principles seated Islamic financial institutions in considering Shariah and green investment.¹¹ The current study specifically helped to bridge the Islamic ethical teachings and modern economic activities in order to promote sustainable development through ethical investments. Such a strategy not only improves the community's economic development but also guarantees environmental protection in the future.

2. Methodology

In the case of “Role of Qawā’id Fiqhiyyah in Marketing Green Investment in Islamic Economics”, the qualitative research presents specific benefits as it helps explore intricate social issues and collect contextually rich details. This approach enables a panoramic view of Qawā’id Fiqhiyyah’s application to promote sustainable investment. Using content analysis, researchers may conduct literature reviews in a structured manner to provide the most pertinent topics, as well as address knowledge deficiency on the relationship between Islam and green investment. Additionally, case studies on effective green investment systems that incorporate Qawā’id Fiqhiyyah may provide views of practical applications and results as well as prove the soundness of these principles. This would be complemented further by organizing focus groups with stakeholders, broadening the scope of research and enhancing discussions on the issues and prospects in this area. Finally, addressing the thematic analysis of the qualitative data collected would enable the researchers to take note of trends and patterns from the information provided. Additionally, it would also explore theories and best practices on how Qawā’id Fiqhiyyah can be applied to enhance green investment in order to promote the goals of Islamic economics. This qualitative approach cuts across various crosscutting issues, concepts, and variables, which are theoretical and practical, making it a suitable approach for this research.

3. Discussion

Qawā’id Fiqhiyyah or Islamic legal maxims are general principles in Fiqh that are concise and intended towards generalization. These maxims are formulated based on the Qur'an, Hadith, or scholarly consensus. Furthermore, these maxims aim to define Shariah. These principles assist in making sense of and implementing more sophisticated legal guidelines across various areas.¹² The maxims are usually stated in a few words but have extensive meanings. Al-Umūr Bi Maqāṣidihā (Matters are judged by their intentions) that is often paraphrased as quoting the length, we treat our matters really for the center of it reflects the strong and objective willingness.¹³ Thus, they are not independent provisions, rather assist in understanding the specific provisions found in the sources of Islamic law. For that reason, Qawā’id Fiqhiyyah is one of the most beneficial legal tools worldwide, simplifying even the most intricate particulars of law. For this purpose, there is a practical application of Islamic law. Qawā’id Fiqhiyyah may attain that which is Shariah compliant while also remaining to the general aims of Shariah.¹⁴ By reading their definitions, one may tell that either the maxims are from the Qur’an or Hadith primary sources of Islamic law only. For instance, the axiom “al-Yaqīn Lā Yazūlu bi al-Shakk” was established with the idea that legal dilemmas ought to be settled with facts, not assumptions, to echo the justice and lucidity which the Holy Qur’ān preaches.¹⁵

These maxims then endow jurists with adequate strategies to cope with emerging issues that remain unaddressed in any conventional text. Furthermore, they also offer alternative strategies that enhance and make Islamic legal thought more flexible. This allows scholars to engage with contemporary issues without transgressing the fundamental principles of Shari‘ah.¹⁶ Additionally, Qawā’id Fiqhiyyah also assumes another function. They ease the task of Ijtihad, independent reasoning, which enables eligible scholars to come up with new edicts, reflecting on the current contexts. It is particularly true in finance, medicine, and environmental ethics, which are developing at a faster pace than Islamic scholars have been able to keep up with, making a case for a new perspective.¹⁷ Hence, Qawā’id Fiqhiyyah is also important since some general principles are consonant with the general jurisprudential theories and the Shariah objectives, which they convey and encapsulate in a few principles. They also assist in realizing that the practice of Islamic law by its adherents is always ethical while at the same time responding to modern-day issues, hence their remarkable importance in the dynamics of Islamic law.¹⁸

The maxim “al-Ḍarar Yuzāl” focuses on the avoidance of harm in all forms. This principle comes from the Hadith and has broader application in Islamic law. It orders that all actions or policies that cause harm to any human being, to society or nature should be discouraged, or if done, must be reversed.¹⁹ Concerning green investment, this principle encourages supporting and financing projects that alleviate the environmental application, such as renewable energy projects, pollution management, and ecologically sound agricultural practices.²⁰ Applying this principle would, in the case of Islamic finance, ensure that the investments do not lead to environmental degradation rather enhance ecological health.²¹

In Islamic jurisprudence, the “al-Ḍarar Yuzāl” principle pertains to actions to prevent or eliminate harm from any source. This principle is relevant to the ideals of green investments and the broader context of environmental impact. Initiatives that align closely with this principle may be implemented through various significant methods to incorporate green or ethical investing.²² Clean energy investors may focus on pollution prevention strategies by investing in renewable energy sources, such as solar or wind power, which reduce emissions before environmental degradation.²³ Restorative approaches play a crucial role in reconstructing and restoring damaged environments. Investment in replanting trees for timber, wetland restoration, and protective farming mitigates the existing damage while enhancing biodiversity and ecosystem health.²⁴

Islamic financial institutions may generally implement an ethical screening process to ensure that investments do not contribute to environmental degradation. Evaluating potential investments through the lens of environmental impact and excluding those that inflict considerable harm allows Islamic finance to adhere to the principle of harm elimination while fostering responsible investment practices.²⁵ Moreover, there is a need to help improve and foster innovation in sustainability and technology. Investments in green technologies, such as energy-efficient systems and clean transportation options are less environmentally harmful and enhance alternative sources.²⁶ Applying the “al-Ḍarar Yuzāl” criterion to investment practices may address the problem of pollution and contribute to minimizing the social and environmental related challenges in the integration of Islamic finance. This approach is not only consistent with the moral principles of Islam but also offers remedies for the most urgent ecological issues faced in the world today.²⁷  

The principle “al-Maṣlahah al-ʿĀmmah,” understood within the Islamic legal framework, significantly narrows down to guiding policies related to green investments within the Islamic finance to emphasize the collective interest. This principle allows mobilizing resources and investments in environmentally, socially, or health-beneficial activities, thus fulfilling the global sustainable developmental agenda including the SDGs.²⁸ When discussing green investments, this principle is implemented in a few ways that advance the common good and increase the levels of well-being within societies. Firstly, investments in clean water workplaces, safe sanitation, improving air quality, and sustaining urbanization are sustainable projects that lower health risks and improve living standards, which also signify enhancing the quality of target communities.²⁹ By mobilizing resources towards such activities, Islamic finance aims to improve the welfare of society and upholds its ethical responsibility to be for the good of people. Additionally, green investments have the potential to boost the economy through job creation, stimulating innovation, and developing green economies. Such projects in renewable energy, green tourism, and sustainable agriculture create jobs and enhance local communities while promoting environmental conservation practices.³⁰ Therefore, Islamic finance aims to engage in and promote only sustainable economic activities from an environmental perspective, thus living true to the definition of being for the public good.

Moreover, the “al-Maṣlahah al-ʿĀmmah” principle incorporates social equity and justice and calls for eliminating societal imbalance and providing necessary services to neglected areas through green investments. For instance, building low-cost and eco-friendly housing, providing electricity to rural population, and developing people’s initiatives to protect nature ensure that sustainable development is not a privilege of a selected few.³¹ Additionally, such sustainable undertakings that take care of the well-being of the subsequent generations by considering the resources and opportunities preserved comply with the public interest principle. Investment in education, environmental protection, and provision of sustainable infrastructure helps address inter-generational equity issues by protecting the environment and resources for posterity.³² In this manner, the Islamic finance system preserves its focus on the societal obligation across generations and its moral obligation by concentrating on such projects. For Islamic finance, the economic return of investment is not the only goal; the investment's broader positive, social, and ecological outcome is also in line with the Islamic principles of “al-Maṣlahah al-ʿĀmmah.” This perspective shows Islamic finance as a tool to improve society by emphasizing projects that advance the common good and sustainable development.³³

The principle “al-Yaqīn Lā Yazūlu Bi al-Shakk” focuses on the advantage of adopting an idea with maximum evidence rather than relying on doubts. This principle is particularly significant when considering green investments in Islamic finance. This maxim (principle) advocates basing decisions on clear evidence rather than speculation to ensure the effectiveness and sustainability of investments.³⁴ In the context of the current phrase, the principle mentions the necessity of extensive preparation before projecting an investment. It emphasizes the concept of evidence-based decisions, whereby investments are backed with well-oriented and reliable scientific evidence and data through, amongst others, impact analysis and feasibility studies.³⁵ Since an information-based investment approach is a risk-cutting strategy, investors would always ensure that their decisions are not speculative, however, specific by depending on established techniques and sound information.³⁶

In addition to that, they also emphasize that there should be very high monitoring and verification measures in place to maintain certainty in such green investments. The measures comprise activities, such as environmental review weaknesses, where the performance of the projects is measured along with external auditing to ensure that the expected environmental outcomes have been achieved.³⁷ For instance, renewable energy projects have the potential to be gauged on their actual carbon emissions reduction to ensure that the desired environmental objectives have been achieved.³⁸ Therefore, such certainty in green investments is achieved by the need for fundamental principles, such as transparency and accountability.³⁹ Investors should bear in mind that investing is not only about achieving returns, however, also about investing in genuinely sustainable projects. To this end, they should demand visibility from project developers through progress reports against sustainability targets.⁴⁰ Such visibility also builds confidence and helps bolster the impact and theory behind green growth as a sustainable investment approach. Islamic finance may rest assured that such green investments are evidence-based and yield positive impacts on the environment while at the same time upholding the principle of “al-Yaqīn Lā Yazūlu Bi al-Shakk”. Not only does this approach reduce risks, however, it also enhances stability and sustainability in the long-run.⁴¹

The principle “al-Umūr Bi Maqāṣidihā” conveys the notion that every action has an objective and these objectives determine the morality or legality of an action. This principle also calls upon green investors in Islamic finance to have guiding principles about how the projects they are involved in would impact the environment and society. Hence, there is a need to further enhance the course of sustainable investing and social responsibility.⁴² This principle may, however, be applied in practice in green investment using various strategies. Firstly, investors must set specific goals for sustainability and focus on measurable, attainable, relevant, and time-bound objectives (SMART). For instance, a green energy-oriented investment program could set out aims to reduce carbon emissions to a certain percentage within a period that emphasizes actions to be taken.⁴³

Focusing on the environmental aspects of the investments, such as social or governance aspects, is also very relevant in this context. Such an approach entails looking into the environmental risks and resource use as well as achieving sustainability objectives to expand investment opportunities. With such restrictions, refocusing investors’ attention on other activities with pretensions is quite reasonable.⁴⁴ This restriction helps ensure that investment goals are consistent with ecology. For instance, a sustainable agriculture institution/style should be beneficial to the environment while ensuring the community's well-being and economic aspects. Adopting this strategy guarantees that investment projects lead to sustainable development by addressing all aspects of the problem.⁴⁵ In addition, the principle of “al-Umūr Bi Maqāṣidihā” makes it possible to think through them critically and improve them further to achieve better synchrony with sustainability goals. It means that investment targets may be evaluated from time to time and changed, and new knowledge and technologies are adopted. Lessons from the past are applied to help do better in the future in terms of environmental sustainability.⁴⁶

Eventually, in their efforts to align their investment objectives with environmental sustainability, basic principles must be followed. One needs to ensure that investments do not abuse the natural environment and that the natural heritage protects them by establishing fairness and equity. Ethical investment decision-making processes allow Islamic finance to honor its ethical requirements while working towards sustainable attributes of justice.⁴⁷ The principle of “al-Umūr Bi Maqāṣidihā” allows Islamic finance to undertake investment that is targeted towards supporting the broader concept of environmental preservation. Such a framework not only adds to the environmental effects of the investments, however, also strengthens the ethical tenets of Islamic finance, thus prompting social transformation for the good.⁴⁸

The principle “al-ʿĀdah Muḥakkamah” appreciates customary practices worth in deciding legal cases. Such a principle aims to include geographical factors, provided such factors do not contravene Islamic law. Within the green investment scope, this maxim justifies using sustainable practices that fit within a given culture.⁴⁹ It promotes the eradication of traditional approaches including knowledge and community involvement in environmental projects. As local traditions are respected, Islamic finance may promote active participation within the communities and ensure that green investments are acceptable and functional.⁵⁰ It is also in the Islamic context of this principle “al-ʿĀdah Muḥakkamah” in the jurisprudence of Islam whereby habitual practices may act as a source of judgment that can be applied in Islamic green investments if high sustainability expectations and practices are upheld. Many articulate that there is a growing demand for financial institutions to facilitate SDGs and realize investments in sustainable endeavors. This has been discussed in the context of multinational enterprises in the financial industry.⁵¹

Other initiatives that could strengthen Islamic finance include compliance with the Equator Principles, the UN Principles for Responsible Investment (UNPRI), and the Global Reporting Initiative (GRI), which may assist in managing projects' environmental and social impacts systematically. Such measures are consistent with what Meng and Shaikh have established footing in environmental, social, and governance (ESG) issues in green finance.⁵² Adhering to these standards gives Islamic financial institutions the confidence that their investments are both Shariah and environmentally friendly. However, as emphasized several times, cultural context matters in global practices being implemented locally. An analysis of sustainability approaches in those international companies, in turn, emphasizes the need for such a global-local integration if sustainable development is to be realized.⁵³ It can be done by setting up community-based conservation initiatives that are culturally sensitive and integrating local knowledge to gain the support of community and ensure the project’s durability. Partnerships with international entities, such as the World Bank and United Nations Environment Program (UNEP) enable knowledge sharing and bring out the best practices, for instance, in pioneering the Green Ocean Strategy for financial sustainability within the higher education sector.⁵⁴ Such partnerships would assist the Islamic finance institutions in formulating appropriate green investment strategies based on international best practices. Lastly, under the “al-ʿĀdah Muḥakkamah” principle, innovation and change are welcomed. Islamic finance has the potential to expand by adopting innovative funding mechanisms, such as Green Sukuk and green waqf for sustainable initiatives, thereby integrating Islamic finance with environmental finance.⁵⁵ Implementing these practices may strengthen the contribution of Islamic finance to environmental sustainability and global climate action efforts.

Green Sukuk has emerged as a distinctive instrument in Islamic financing for funding environmentally sustainable projects worldwide, adhering to Shariah laws that emphasize justice, equity, and fairness. Green Sukuk aims to finance initiatives that promote positive environmental practices including renewable energy, energy conservation, and efficient waste management. The $1.25 billion green bond implemented by the Indonesian government in 2018 for green projects demonstrated success, establishing Green Sukuk as a significant contributor to renewable energy sectors, including solar and wind energy. Likewise, Green Sukuk in Malaysia has supported funding for some colossal solar projects, propelling the country towards its renewable energy objectives. Such measures depict the intended integration of Green Sukuk with the national sustainability plans of member states.⁵⁶ Additionally, the Green Sukuk, such as the bonds used to finance energy efficiency projects, are aimed at transforming various sectors, including the construction industry, which lowers energy usage and improves processes. This is reflected in the Saudi Electricity Company’s search for Green Sukuk to fund energy efficiency projects.⁵⁷

Apart from the mentioned energy projects as the primary and obvious focus areas, Green Sukuk has been used in projects that target waste management and recycling solutions. For instance, Green Sukuk improved the waste management practices at the Piyungan landfill in Indonesia, reducing greenhouse gas emissions. This application demonstrates the versatility of Green Sukuk in addressing various environmental developments.⁵⁸ Green Sukuk has been employed to finance efficient public transportation systems, including infrastructure for electric vehicles, among other sustainable mobility initiatives. These projects aim to reduce transportation emissions while promoting a sustainable public transport system in urban areas, improving the overall environmental sustainability efforts.⁵⁹

In this context, Green Sukuk signifies a progression in Islamic finance, providing a funding vehicle that is both environmentally-oriented and aligned with religious principles. Their application in several domains substantiates this. Moreover, they possess the capacity to provide considerable environmental advantages alongside economic benefits in promoting global sustainable development initiatives.⁶⁰ Financing renewable energy and energy efficiency initiatives via Green Sukuk, a financial instrument, is crucial for advancing sustainable economic development and low carbon emission practices. Transitioning to renewable energy is essential for climate change mitigation, as these sources generate electricity without carbon dioxide (CO2) emissions. It aligns with findings that underscore the significance of long-term investment in renewable energy initiatives to mitigate CO2 emissions.⁶¹

In Indonesia, renewable energy initiatives funded by Green Sukuk are anticipated to substantially diminish the nation's carbon footprint, thereby demonstrating the efficacy of such financing in attaining sustainable development. Moreover, investments in energy efficiency, such as those by the Saudi Electricity Company, illustrate how Green Sukuk can produce substantial energy efficiency and emissions reduction. Energy-efficient buildings and industrial processes consume less energy, hence reducing emissions.⁶² Foreign financial help is perceived by many as foreign aid that may facilitate the transition to cleaner energy technologies in developing economies.⁶³

Green Sukuk additionally fosters effective waste management techniques, exemplified by the Piyungan landfill project in Indonesia, which mitigates methane emissions and promotes recycling. It pertains to the necessity for good waste management in order to conserve resources and reduce environmental contamination.⁶⁴ Moreover, Green Sukuk enhances living standards and creates new employment prospects by promoting projects aligned with the SDGs, thus contributing to sustainable development. The issuance of Green Sukuk attracts conscientious investors for eco-friendly initiatives and fosters the incorporation of environmental considerations into financial decision-making.⁶⁵ Green Sukuk allocates financing for carbon-neutral projects while simultaneously fostering economic viability by aligning the principles of Islamic finance with the objectives of environmental sustainability. This technique facilitates effective responses to climate change, potentially the most effective strategy for ensuring a sustainable future.⁶⁶

Applying Qawā’id Fiqhiyyah in Green Sukuk analysis enhances its conformity with Islamic principles and sustainability objectives. The principle of al-Ḍarar Yuzāl (Harm Must Be Eliminated) mandates that investments circumvent environmental harm, whereas Maṣlaḥah (Public Interest) emphasizes programs that enhance public welfare, including renewable energy initiatives. Al-Yaqīn Lā Yazūlu Bi Al-Shakk (Certainty is Not Overruled by Doubt) necessitates meticulous project selection to guarantee a significant impact. Al-Umūr Bi Maqāsidihā (Judgment by Intentions) steers Green Sukuk towards explicit sustainability goals, whereas al-ʿĀdah Muḥakkamah (Custom is Arbitrator) harmonizes global sustainability standards with Islamic principles. Collectively, these principles establish Green Sukuk as a Shariah-compliant instrument for ethical and sustainable finance.

Islamic green funds serve as an intersection between profitability and sustainability. The parties allocate their resources to finance renewable energy, sustainable agriculture, and green infrastructure, all in compliance with Sharī‘ah law. The al-Meezan green fund in Pakistan exemplifies this by financing renewable energy projects to promote clean energy and reduce greenhouse gas emissions through sustainability objectives.⁶⁷ Religious texts, especially the Quran, provide Islamic green funds with ethical guidance. The UN-endorsed SDGs align closely with the Qur’ān's advocacy for environmental preservation for future generations.⁶⁸ This religious approach attracts individuals focused on ethical and sustainable investing, as observed in Malaysia, where a favorable view of religion improves investor sentiment.⁶⁹

In addition to ethical considerations, Islamic green funds provide investors with substantial diversity and reduced risk through their robust portfolio of projects across several sectors and geographies. This results in diminished risk from individual projects and enhanced return stability, as evidenced by the performance of green assets and their correlations throughout crises.⁷⁰ Furthermore, effective professional money administration ensures systematic resource allocation, resulting in substantial environmental and economic benefits.⁷¹ Nevertheless, hurdles, such as greenwashing or lack of standardized impact indicators may undermine the impact of sustainable investments.⁷² These funds promote the development of green finance market by welcoming responsible investors committed to building a sustainable future.

Corporate Social Responsibility (CSR) in Islamic finance is closely linked with the concepts of Maqasid al-Shariah. All these embrace the ethical business conduct that motivates the achievement of environmental conservation and social goodwill. Islamically, many Islamic financial institutions practice some CSR that aims at activities that preserve life, property, intellect, family, and faith. From the available literature, CSR is said to enhance financial performance and drive eco-innovation. For instance, adopting CSR practices may reduce agency problems and promote corporate green innovations that advance financial performance.⁷³ It is in line with the prevalence of the Islamic finance sector in terms of the provision of sustainable measures including, for instance, issuing green loans and eco mortgages, which have favourable financing terms for environmentally friendly projects, such as solar energy systems.⁷⁴

Islamic financial institutions do not stop at providing such financial instruments. However, they also educate the public on waste management and energy-saving practices that enable the communities to engage in sustainable actions. These activities contribute to community engagement and commitment to sustainability, thus strengthening the resilience of communities in the long-run.⁷⁵ Furthermore, Indonesian experiences with Islamic green finance have revealed the role of Islamic financial instruments, such as Green Sukuk in renewable energy projects and low-carbon technologies for promoting environmental protection and social development.⁷⁶ This practice follows the aim of sustainable development since it encourages the creation of employment in green enterprises, thus promoting economic development and fighting poverty.⁷⁷ However, some challenges still exist, such as the availability of statistics and information on the niche Islamic green finance practices and the sociocultural and religious bases that determine and affect the adoption rate in different regions.⁷⁸

There are limitations to incorporating green investments into Islamic finance. These include a lack of awareness and understanding among stakeholders, a lack of coherent regulation, and a dearth of standard definitions of green investment criteria. These problems may act as a barrier to implementing sustainable strategies and advancing green financial products. It is necessary to implement educational activities, such as seminars and workshops in order to inform the stakeholders of green finance. Establishing networks or platforms for sharing knowledge and best practices among Islamic finance practitioners, environmental experts, and policymakers helps the community.⁷⁹ The absence of consistent guidelines for green investment makes it difficult to evaluate its environmental scope and consequences. Science-based and internationally comparable overrides could be developed by formulating a green taxonomy. Transparency and accountability should be enhanced through certification and verification processes including third-party verification.⁸⁰

Nonetheless, the sector's rapid growth poses significant challenges, although the prospects for green investment in Islamic finance remain favorable. As globalization advances, the global society is increasingly concerned about environmental challenges, thus requiring sustainable investment options. Thus, due to the ethical principles of Islamic banking, this potential may be utilized to offer green financial solutions, such as Green Sukuk, which are utilized in ecologically advantageous projects.⁸¹ Moreover, reliance on fossil fuels may be diminished as countries investing in green initiatives would enhance their economies and generate new growth opportunities.⁸² By addressing these concerns through awareness, policy formulation, and collaboration with international colleagues, Islamic finance may effectively promote environmental stewardship and support global anti-climate change measures.

Eventually, considering the challenges of green investment in Islamic finance, incorporating Qawā’id Fiqhiyyah principles provides ethical and pragmatic solutions. The principle of al-Ḍarar Yuzāl says that the harm must be removed. This principle means that benefits take precedence; initiatives, such as Green Sukuk would decrease dependency on fossil fuels and lessen the carbon emissions when implementing such projects. In the same vein, Maṣlaḥah encourages investing in projects that serve people, hence calling for the adoption of a green taxonomy framework that aims at classifying sustainable investment by its positive social and ecological attributes, for instance, access to clean energy to communities. Additionally, al-Umūr Bi Maqāsidihā helps to increase understanding and improve the area of cooperation, in this case in terms of the need for certification and verification to ensure that green projects are evidence of a real commitment to social aims rather than just a statement of good intentions. By and large, the above principles lend strength to the use of Islam in promoting the environmental conservation of resources in the world by Shariah principles.

4. Conclusion

The current study demonstrated that the principles of Qawā’id Fiqhiyyah are essential in guiding green investments in Islamic finance by integrating ethical investments and sustainability goals by the Shari'ah injunctions. Concepts, such as al-Ḍarar Yuzāl (The Harm is Lifted) and Maṣlaḥah (the common good) entail that such harmful investments are made that do the least harm to the environment and the society. Therefore, such investments as renewable energy and sustainable infrastructure are encouraged. The outcomes of implementing these principles, which restored increased transparency and accountability and the impact assessment of green investments, such as Green Sukuk and Islamic green funds, were quite promising. Furthermore, the study identified the need to develop a standard definition and robust evaluation process of such frameworks. Their alignment with Qawā’id Fiqhiyyah is crucial since it ensures that the green aspects of Islamic investments address environmental concerns and ethical obligations. In its totality, this integration provides a suitable mechanism for sustainable development, indicating that Islamic finance may tackle environmental problems worldwide due to adherence to Islamic ethical standards. In conjunction with classical Islamic law and modern sustainability practices, this method enhances asphalt finance's ability to advance global sustainability goals.

Conflict of Interest

The manuscript author has absolutely no financial or non-financial conflict of interest regarding the subject matter or material discussed in this manuscript.

Data Availability Statement

The data associated with this study will be provided by the corresponding author upon request.

Funding Details

This research did not receive grant from any funding source or agency.