Designing a Fatwa on Carbon Trading in Indonesia Based on Maqashid al-Shari'ah

Carbon trading as an instrument for climate change mitigation has been regulated through national policies and international frameworks (the 1997 Kyoto Protocol, the 2015 Paris Agreement, and Presidential Decree No. 98 of 2021), but to date there are no official Islamic jurisprudence guidelines guiding Islamic economic actors in carbon transactions. The absence of a fatwa from the National Sharia Council (DSN-MUI) has created legal uncertainty, with concerns about usury, gharar, and speculation, leading to the underutilization of the potential of Islamic green financing. This article aims to formulate a framework for carbon trading fatwas that aligns with the objectives of the maqashid al-shari'ah (environmental preservation), 'adl (justice), and the prohibition of gharar/usury. The method used is a juridical-normative approach with a literature review of conventional regulations, mu'amalah fiqh fatwas, and classical (al-Shatibi) and contemporary (Yusuf al-Qardhawi, Ali Yafie) thought. The results of this research are a draft fatwa framework governing the contract scheme, Measurement-Reporting-Verification mechanisms, and the roles of regulators and business actors in Sharia-compliant carbon trading. This framework is expected to serve as a reference for the National Sharia Council (DSN-MUI) and policymakers to strengthen legal certainty and encourage green investment in the Islamic economy. Implications of the research include recommendations for fatwa implementation, the development of Sharia-compliant carbon market instruments, and directions for future empirical research.