ISLAMIC GREEN FINANCING IN MALAYSIA: A SYSTEMATIC REVIEW OF ISSUES, CHALLENGES, AND A MAQASID-VBI FRAMEWORK
DOI:
https://doi.org/10.22452/Keywords:
Green finance, Maqasid al-Shariah, Value-Based Intermediation, Islamic, systematic literature review, ESG.Abstract
This paper conducts a systematic literature review (SLR) on issues in Islamic green financing, highlighting the problems that arise in this area. It covers potential challenges in Islamic finance, the ethical values that govern business activities, and the core concepts of Islamic and green finance. To establish a solid foundation for understanding, the Maqasid al-Shariah principles and Value-Based Intermediation (VBI) ethical values are embedded to address the issues discussed and to provide further guidance in the development of shariah-compliant green financing instruments. The Reporting Standards for Systematic Evidence Synthesis guide this SLR and inform the formulation of research questions using the mnemonic “issues, challenges, limitations, and obstacles” in the context of Green Islamic financing. Using Google Scholar, we gathered and analysed thirteen articles to develop themes. The themes that emerged concern issues in Islamic green financing, including its purposes and benefits in relation to the Maqasid al-Shariah. Drawing on the analysis, this study proposed a Maqasid al-Shariah and VBI framework to address challenges in Islamic green financing in Malaysia.
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