INTEGRATING ISLAMIC ETHICAL GOVERNANCE INTO GREEN ECONOMY TRANSITIONS: AN ECOLOGICAL POLITICAL ECONOMY PERSPECTIVE FROM INDONESIA AND OTHER MUSLIM ECONOMIES

Abstract

Global efforts to address climate change and environmental degradation increasingly emphasize the transition towards green economy development models. Despite growing policy adoption, many green economy frameworks remain predominantly technocratic, focusing on regulatory instruments and market-based mechanisms, while neglecting deeper normative and institutional dimensions that shape economic behavior. This study examines the potential contribution of Islamic ethical governance to strengthening green economy policy frameworks in Muslim-majority societies. Drawing on ecological economics and political economy perspectives, the research develops an integrated conceptual framework linking Sustainable Development Goals (SDGs), Environmental, Social, and Governance (ESG) standards, and Islamic economic principles derived from Maqasid al-Shariah. Using Indonesia as the primary case study, and incorporating comparative analysis of Malaysia, the United Arab Emirates, Saudi Arabia, and Turkey, the study employs qualitative policy analysis combined with systematic literature review. The findings reveal strong conceptual alignment between Islamic ethical principles particularly justice (adl), balance (mizan), stewardship (khalifah), and harm prevention (fasad) and contemporary sustainability governance frameworks. However, these values remain only partially institutionalised within existing green economy policies. The study proposes a value-based sustainability governance model that integrates ethical norms with economic policy instruments to enhance policy coherence, institutional legitimacy, and long-term sustainability transitions. The paper contributes to interdisciplinary scholarship by bridging ecological economics, sustainability governance, and Islamic political economy, offering new insights into culturally embedded approaches to sustainable development.