Prophet Muhammad (S.A.W), in a hadith in Musnad Ahmad mentioned that mankind would be rewarded for efforts in improving greenery; making it incumbent on every Muslim to contribute towards such efforts. In terms of the relationship between mankind and the environment, the teachings of Islam basically promote preservation of natural resources and the need to respect all living things. Failure to do so would be detrimental, as stated in verse 41 of Al-Rum where severe destruction of the land and sea would come upon those who mistreat the environment. It is therefore crucial for everyone, including Islamic banks to consciously play their role towards ensuring environmental sustainability. Achieving environmental sustainability is the responsibility of everyone and the banking industry must do its part. The role of Islamic banks extends beyond being a component of a financial system, but as part of a total value-based social system that is driven by the principle of public interest or maslahah. This system seeks to enhance the general welfare of society. Environmental protection and sustainability should be part of the Islamic finance agenda to ensure the fulfillment and establishments of the spirit of Islamic tenets. As the global economy is transitioning towards a low-carbon and more sustainable model, the industry can contribute immensely towards the greening of the world. Islamic financing facility for green technology is another growth area worth engaging and with the necessary incentives and infrastructure in place, our Islamic banks are capable of becoming a significant player.

There are many forces that would drive the green technology industry into the future; demographic change, urbanisation, globalisation, scarcity of resources and the challenge arising from climate change. These forces would inevitably transform society towards a green economy. Its usage in traditional industries would promote the development of new technology and recast existing one. Green technologies have also proven to drive modernisation in the traditional industries, in terms of better utilisation of energy and natural resources and could prove to be a strategic advantage in doing business. Some have aptly compared the green revolution to the industrial revolution, an era that had profoundly changed our civilisation. Just as the transformative 19th-century innovations changed businesses, so too will green technologies alter industries, companies and societies for the environmental good, thus with these changes create new opportunities for businesses. The shift towards a green economy affects all stakeholders – decision makers, and policy formulators, companies and their customers. Increasingly, investors are emphasizing sustainability to the environment as an important investment criterion. In Malaysia, the New Economic Model incorporates sustainability as one of its key principles and it has been identified as a Key Strategic Reform Initiative. In 2009, we have made a commitment in Copenhagen to reduce up to 40% in terms of carbon emission intensity of GDP by the year 2020. The National Green Technology Policy launched during the same year provides direction and motivation for the growth of the green technology industry and to enhance its contribution to the national economy.