Abstract
Abstract This study examines the ethical implications of integrating Islamic economic principles into carbon pricing governance, highlighting how faith-consistent climate finance may contribute to public legitimacy, distributive equity, and policy learning in Muslim-majority contexts such as Indonesia. By foregrounding justice (ʿadl), stewardship (khilāfah), and public welfare (maṣlaḥah), the findings suggest that carbon pricing frameworks can move beyond technical efficiency to incorporate ethical considerations and social accountability that may support long-term sustainability governance. Using a qualitative comparative approach, the study examines carbon pricing policies in Indonesia, the United Kingdom (UK), and the European Union (EU) through regulatory document analysis and expert focus group discussions (FGDs). Indonesia’s Carbon Economic Value (CEV) framework shows partial alignment with Islamic ethical principles, particularly in its emphasis on national ownership and the potential for ethical reinvestment of carbon revenues. In contrast, the UK and EU Emissions Trading Schemes demonstrate stronger institutional maturity and market stability, while also raising distributive concerns regarding equity for vulnerable groups and developing countries. The originality of this study lies in proposing an Islamic ethical evaluation framework for carbon pricing that bridges normative religious values with environmental governance. This research contributes to sustainability studies and Islamic economics by extending the maqāṣid al-sharī‘ah into comparative policy evaluation and offering a culturally relevant normative perspective for value-based climate governance.