Towards an Environmentally Sustainable Green Economy: An Islamic Perspective on Economic Diversification and Environmental Preservation

Abstract

Global sustainability rests upon the twin pillars of the worldwide economy and a quality environment. The world faces significant challenges, including poverty, environmental pollution, and issues related to globalisation. Therefore, developing effective strategies for achieving the Sustainable Development Goals within the designated timeframe is necessary. Every corner of this globe is facing those challenges. To address these global concerns, this study asserts that achieving consistent solutions necessitates the development of a rational, environmentally sustainable, and diversified economy. Islamic economies maintain stability by adhering to permissible practices like halal goods and avoiding prohibited actions such as riba (interest), gharar (excessive speculation), and other Shari’ah restrictions. Key findings of this study indicate that developing a sustainable and environmentally conscious green economy requires effective methods and a diverse range of Shari’ah-compliant financial sources. Efficient production and diversification of the Islamic economy would improve socio-economic conditions and preserve the environment by addressing several international complexities. This study aims to describe an environmentally friendly, sustainable green economy with diversification in a Shari’ah-compliant way. Case study and document analysis methods have been applied to achieve the aim of this research. To analyse and justify the arguments, this paper has reviewed various primary and secondary sources, such as legislation, treaties and relevant scholarly literature. The significance of this study is that it explores, assesses and suggests all possible instruments and sources of Islamic economy that could be diversified for the growth of the global economy, sustainable development and a quality environment.

Keywords: Islamic economic; green economy; environmental ethics in Islam; sustainable development; economic diversification in Muslim countries