<![CDATA[This research investigates the dynamic interplay between Islamic Green Finance (IGF), governance quality, and environmental sustainability across 24 Organization of Islamic Cooperation (OIC) member states from 2012 to 2023. Employing a Panel Autoregressive Distributed Lag (ARDL) framework, the study disentangles short-term fluctuations from long-term equilibrium relationships among per capita GDP, Regulatory Quality (RQ), IGF development, Oil Rents, and CO₂ emissions. The analysis yields three central findings. First, Regulatory Quality consistently exhibits a significant positive influence on environmental performance in the long run, particularly under the Dynamic Fixed Effects estimator. Second, the Error Correction Term is negative and statistically significant, confirming a stable convergence toward equilibrium following transient shocks. Third, country-level short-run estimates reveal considerable heterogeneity: Regulatory Quality enhances environmental sustainability in Iran and Iraq, whereas IGF displays divergent impacts across nations such as Bahrain and Malaysia. From a policy perspective, the study underscores the need to embed green financial instruments within robust regulatory frameworks and tailor them to local economic structures to support the low-carbon transition in resource-dependent Muslim economies effectively. Specifically, policymakers should prioritize institutional strengthening, develop sharia-compliant green taxonomies, and design fiscal incentives that align oil revenues with sustainable investment. These insights offer actionable guidance for regulators, Islamic financial institutions, and governments in OIC countries seeking to harmonize economic growth with environmental sustainability.]]>
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