Islamic Finance and Green Goals Grow Together | Sustainability

Islamic finance and green finance are becoming closer. Experts say both systems share the same values and can help protect the planet.

Islamic finance is now worth about $2.8 trillion around the world. It is based on rules from Islamic law. It does not allow interest and avoids harmful industries. It focuses on fairness, help for people and doing no harm.

Green finance, also called ESG finance. Supports clean energy and safe projects for the environment. Experts say both types of finance work toward similar goals.

A new report shows that only a small part of green loans are linked with Islamic finance. But experts believe this can grow in the future.

Banks in Asia and the Middle East are already working on new ideas. One example is a blue sukuk. This is a special Islamic bond used to protect oceans, fish and coastal areas.

Maybank, a large bank in Malaysia is leading many of these projects. The bank says Islamic finance can help support clean energy and nature protection. It also says it can help families and local communities grow stronger.

Experts say Southeast Asia needs a lot more money for climate projects. The region needs about $210 billion each year. But it currently gets much less than that.

Bank leaders believe Islamic finance can help fill this gap. They say it can bring more money into green projects and support poor and coastal areas.

Maybank also plans to grow more green funds and support eco friendly businesses. The bank wants finance to become more focused on nature and people.

Experts say the future of finance may be more simple. Money systems may focus more on helping people and protecting the earth.