Green Financing Using Islamic Finance Instruments in Indonesia: A Bibliometrics and Literature Review

Abstract

Indonesia needs financial assistance to meet the emission reduction target by 2030, projected to cost USD 118 billion by developing renewable energy plants. The government cannot rely on the state budget in achieving the emission reduction target, so other financing innovations are needed. Islamic finance, with its unique principles and instruments, can play a significant role in this endeavour. This research attempts to investigate the interconnection between green finance and Islamic finance within the domain of energy transition in Indonesia. An study of bibliometrics using Vosviewer software and a literature review using the PRISMA concept were performed to provide a thorough overview and identify future research directions based on past works in the Scopus database on green finance and Islamic finance instruments. This research used 42 journal articles from 2014 to 2024. Studies within this group delve deeper into Islamic finance as a viable alternative for implementing sustainability concepts in the financial domain.

Keywords

• Green Finance, Islamic Finance, Renewable Energy, Sustainable Economy, Energy Transition