Innovative Islamic banking approaches to develop clean energy projects

The article is devoted to innovative approaches of Islamic banking in supporting and financing clean energy projects. In the context of global challenges related to climate change and the need to transition to sustainable energy sources, Islamic banking is an important tool for the implementation of...

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Main Author: Habes Almajali Ahmad
Format: Article
Language:English
Published: EDP Sciences 2025-01-01
Series:E3S Web of Conferences
Online Access:https://www.e3s-conferences.org/articles/e3sconf/pdf/2025/14/e3sconf_icaw2024_01014.pdf
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author Habes Almajali Ahmad
author_facet Habes Almajali Ahmad
author_sort Habes Almajali Ahmad
collection DOAJ
description The article is devoted to innovative approaches of Islamic banking in supporting and financing clean energy projects. In the context of global challenges related to climate change and the need to transition to sustainable energy sources, Islamic banking is an important tool for the implementation of environmentally friendly and cost-effective projects. Islamic financial principles, such as the prohibition of interest, uncertainty and gambling, provide a special financing model that can be effectively applied to the implementation of renewable energy projects. Key Islamic financial instruments, such as ijara, mudaraba and mursala, provide opportunities for sustainable investments in solar, wind and hydropower projects, as well as other environmentally friendly technologies. The article structures examples of successful application of Islamic financial instruments in the clean energy sector, analyzes the potential benefits and challenges faced by Islamic financial institutions when investing in environmental projects. The main findings highlight the need for further development of Islamic banking to support the global transition to sustainable energy sources, as well as the role of Islamic finance in combating climate change and ensuring a sustainable energy future for all countries.
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spelling doaj-art-de8bc5e2cdca4c1fb413284b30ec5ae12025-08-20T02:13:51ZengEDP SciencesE3S Web of Conferences2267-12422025-01-016140101410.1051/e3sconf/202561401014e3sconf_icaw2024_01014Innovative Islamic banking approaches to develop clean energy projectsHabes Almajali Ahmad0Department of Islamic Banking, Zarqa UniversityThe article is devoted to innovative approaches of Islamic banking in supporting and financing clean energy projects. In the context of global challenges related to climate change and the need to transition to sustainable energy sources, Islamic banking is an important tool for the implementation of environmentally friendly and cost-effective projects. Islamic financial principles, such as the prohibition of interest, uncertainty and gambling, provide a special financing model that can be effectively applied to the implementation of renewable energy projects. Key Islamic financial instruments, such as ijara, mudaraba and mursala, provide opportunities for sustainable investments in solar, wind and hydropower projects, as well as other environmentally friendly technologies. The article structures examples of successful application of Islamic financial instruments in the clean energy sector, analyzes the potential benefits and challenges faced by Islamic financial institutions when investing in environmental projects. The main findings highlight the need for further development of Islamic banking to support the global transition to sustainable energy sources, as well as the role of Islamic finance in combating climate change and ensuring a sustainable energy future for all countries.https://www.e3s-conferences.org/articles/e3sconf/pdf/2025/14/e3sconf_icaw2024_01014.pdf
spellingShingle Habes Almajali Ahmad
Innovative Islamic banking approaches to develop clean energy projects
E3S Web of Conferences
title Innovative Islamic banking approaches to develop clean energy projects
title_full Innovative Islamic banking approaches to develop clean energy projects
title_fullStr Innovative Islamic banking approaches to develop clean energy projects
title_full_unstemmed Innovative Islamic banking approaches to develop clean energy projects
title_short Innovative Islamic banking approaches to develop clean energy projects
title_sort innovative islamic banking approaches to develop clean energy projects
url https://www.e3s-conferences.org/articles/e3sconf/pdf/2025/14/e3sconf_icaw2024_01014.pdf
work_keys_str_mv AT habesalmajaliahmad innovativeislamicbankingapproachestodevelopcleanenergyprojects