Ecotheology in Islamic Finance : Integrating Core Waqf Values into Green Sukuk for Environmental Sustainability
Keywords:
Green Sukuk, Waqf, Ecotheology, Sustainable Finance, Blended FinanceAbstract
Green Sukuk instruments currently face a critical challenge due to the predominance of commercial orientations that marginalize ecological spirituality, thereby constraining their long-term effectiveness in environmental financing. This study aims to formulate an integrative framework that embeds core waqf values and Islamic ecotheological principles into the structural design of Green Sukuk to enhance environmental sustainability. Employing a qualitative descriptive method through library-based research, this study conducts a content analysis of classical Islamic jurisprudence, financial regulations, and waqf management models. The findings reveal that the waqf principle of perpetuity demonstrates strong ontological compatibility with the concept of environmental sustainability. This research proposes a reconstructed model of Cash Waqf-Linked Green Sukuk (CWLGS), in which waqf funds operate as patient capital within a blended finance scheme. The results indicate that waqf integration can reduce capital costs and mitigate investment risks in non-bankable green projects, thereby transforming Green Sukuk from a conventional debt-based instrument into an inclusive socio-spiritual financial solution for addressing the global climate crisis.
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