Advancing climate policy in carbon accounting to control for carbon emissions: an Islamic moral economy emphasis

The Islamic Financial System emphasizes attaining societal welfare and benefits over social responsibility reporting and the existing function of climate policy aimed at mitigating carbon emissions. This study evaluated the elevated ethical standards required by the Islamic Moral Economy, focusing on the social and environmental goals within the Islamic Financial System. This study validated that the existing climate legislation in Malaysia and Indonesia, together with the Islamic Moral Economy inside the Islamic Financial system, had significantly heightened public awareness regarding the necessity to mitigate carbon emissions associated with gas combustion. Nonetheless, these efforts will not avert the greenhouse gas emissions potentially generated by extensive government projects employing coal power stations. The results of this study may assist policymakers in formulating effective strategies to mitigate climate change and adapt to its consequences.