Revisiting Waqf as a Catalyst for Green Economic Transformation in the Twenty-First Century

Abstract

Climate change, environmental degradation, resource scarcity, economic inequality, and unsustainable development patterns have intensified the need for innovative and ethically grounded financing mechanisms for the green transition. Despite growing global commitments to sustainable development, significant financing and institutional gaps continue to constrain environmentally responsible economic transformation. This study therefore examines the potential of waqf as an Islamic social finance institution for advancing green economic transformation in the twenty-first century. Specifically, it explores how waqf can support climate resilience, resource conservation, environmental sustainability, and inclusive economic development from an Islamic economic perspective. The study adopts a qualitative research design based on analytical and thematic examination of classical and contemporary literature on waqf, Islamic economics, green finance, environmental sustainability, and sustainable development. The findings indicate that waqf possesses considerable potential to finance renewable energy, sustainable agriculture, afforestation, natural-resource management, environmental education, green infrastructure, biodiversity conservation, and climate-adaptation initiatives. Its permanence, flexibility, and social-welfare orientation provide a foundation for supporting long-term environmental and socio-economic objectives. The study further discusses how integrating waqf with contemporary technologies, sustainability policies, and global green-finance practices could strengthen environmental governance, promote green employment, and enhance climate resilience. The study contributes an analytical framework for repositioning waqf as an ethical, inclusive, and potentially transformative instrument for linking Islamic philanthropy with green economic development.