<![CDATA[This critical literature review examines the integration of Shariah principles and green finance in advancing the Sustainable Development Goals (SDGs). Islamic banking, grounded in Maqashid al‑Shariah—which emphasizes preservation of wealth, justice, social welfare, and environmental stewardship—provides an ethical foundation for sustainable financial practices. Drawing from qualitative analysis of academic literature, regulatory frameworks (including OJK, DSN‑MUI, AAOIFI), institutional reports, and SDG documents, the study highlights strong theoretical synergy between Islamic finance and sustainability goals—evident in instruments like green sukuk and ESG-compliant investments, yet tempered by persistent challenges such as the lack of standardized Shariah-compliant green instruments, regulatory barriers, low stakeholder literacy, and institutional constraints. Notable case examples, including Malaysia’s SRI Sukuk Framework and Indonesia’s green sukuk initiatives, demonstrate viable paths forward. To address critical gaps, the paper proposes a readiness index based on four dimensions—product availability, institutional commitment, policy compliance, and community outreach—and recommends policy incentives, Shariah-fatwas, academic-industry collaboration, and enhanced public education to better position Islamic finance at the forefront of global sustainability efforts.]]>
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