Volume V: Economy, Politics, and Environmental Governance

The Integration of Carbon Accounting in Islamic Economics: A Conceptual Islamic Social Finance Model for Advancing Sustainable Development Goal 15 (Life on Land)

  • Aulia Rahmi UIN Sunan Gunung Djati Bandung, Indonesia
  • Afda Refani UIN Sunan Gunung Djati Bandung, Indonesia
  • Harmanto Raharjo UIN Sunan Gunung Djati Bandung, Indonesia

Keywords

Islamic Carbon Economy, Islamic Social Finance, Green Investment, Carbon Accounting, Carbon Sequestration, SDGs 15.

Abstract

Global environmental degradation, particularly land degradation and deforestation, indicates that conventional approaches to environmental management remain sectoral and have not been able to comprehensively integrate financing, investment, and impact measurement. This study aims to develop an Islamic Carbon Economy framework through the integration of Islamic Social Finance, green investment, carbon accounting, and carbon sequestration into a unified conceptual model to support the achievement of Sustainable Development Goal (SDG) 15. The research employs a qualitative library-based approach using conceptual analysis and theoretical synthesis. Primary sources include classical works on maqāṣid al-sharīʿah and reports published by international institutions, while secondary sources consist of reputable journal articles published between 2019 and 2025. The findings reveal that these four components are systematically interconnected. Islamic Social Finance functions as a strategic source of funding directed toward green investments such as reforestation and land rehabilitation. Carbon accounting serves as a measurement, reporting, and verification mechanism that ensures transparency and accountability, while carbon sequestration represents the primary ecological outcome and simultaneously generates economic value through carbon credits. Ethical principles embedded within Islamic finance are found to strengthen environmental governance by aligning economic objectives with ecological sustainability. This study recommends the development of carbon waqf, environmental zakat, and Sharia- compliant carbon markets as derivative instruments, as well as further empirical research to examine the validity and applicability of the proposed model within real policy contexts.

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