Purpose The study explores the potential of Islamic finance to foster green financing, with a focus on justice, transparency, and risk-sharing, and examines its role in achieving sustainability goals. Design/methodology/approach This research employs bibliometric analysis and a Systematic Literature Review (SLR) of 122 high-quality Scopus-indexed scholarly articles. The review maps the intellectual capital and themes in Islamic finance, particularly in relation to sustainability. Findings This study revealed the evolution of Islamic finance and sustainability, with a focus on green Islamic banking, Sharia-compliant microfinance, and Islamic capital markets, such as sukuk, for sustainable financing. It also highlighted the significant role of Islamic social finance instruments, like green waqf, in promoting climate action. The study emphasizes the importance of integrating Islamic finance with corporate social responsibility (CSR) and governance practices. Additionally, it identified several gaps in the literature on green Islamic finance, including the role of Artificial Intelligence (AI), Environmental, Social, Governance (ESG) integration, government policies, green sukuk, and educational initiatives aimed at aligning Islamic finance with national sustainability goals. Originality/value This study is unique in its comprehensive examination of Islamic finance in the context of sustainability, with a focus on emerging trends such as green Islamic banking and the integration of Islamic finance with sustainability goals. It focuses on newer concepts like green waqf for climate action and Islamic social finance's role in addressing environmental issues. Furthermore, it identifies novel research areas, such as the use of AI, the Internet of Things (IoT), and ESG frameworks in Islamic finance, indicating a forward-thinking approach to aligning Islamic financial practices with global sustainability efforts.
Widiastuti et al. (Thu,) studied this question.