Circular economy and Islamic finance: An Ijarah way forward
Our economic system is built on a linear notion of ‘take-make-dispose’, where resources are extracted from the planet, goods are then produced, and eventually they are disposed; often for other products. The model has been working for us so far, yet it contains an inherent fl aw which is that it assumes that our planet’s resources are infi nite. Accordingly, such a model is not sustainable in the long-run, and will eventually break. Climate changes, environmental degradation, and landfills are all planet-stressing byproducts of this linear approach.
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