Reconstruction of Islamic Green Banking: Fiqh Al-Bi’ah As A Model Of Sustainable Islamic Finance

Despite the growth of green financing, Islamic banking remains largely reliant on secular Environmental, Social, and Governance (ESG) frameworks, overlooking the normative foundations of Fiqh al-Bi’ah (Islamic environmental jurisprudence). This study reconstructs an Islamic green banking model grounded in Fiqh al-Bi’ah to advance Sustainable Islamic Finance. Using a qualitative socio-legal approach, it combines bibliometric analysis, Natural Language Processing (NLP), and Ijtihadi Maqashidi analysis to examine 34 Indonesian Islamic banks from 2017 to 2024. NLP-based text mining reveals isomorphic mimicry, with Fiqh al-Bi’ah terminology appearing in less than 1% of sustainability reports. In response, the study proposes an operational model integrating principles such as fasād, mīzān, and ḥimā into banking mechanisms, including Eco-Haram Screening, Maqasid-based Credit Scoring, and Conservation-Linked Financing. The model offers a framework for regulators and Sharia standard-setters to shift Islamic banking from compliance-based practices toward value-based sustainable finance.