Halal with Hydrogen: A Sustainable Energy Paradigm for a Low-Carbon Future

Abstract

As the world confronts the pressing realities of climate change and energy insecurity, the role of hydrogen, particularly green hydrogen, is becoming pivotal in the global energy transition. Hydrogen holds immense potential as a clean energy carrier that can facilitate the decarbonization of hard-to-abate sectors like industry, transportation, and heavy manufacturing. This paper explores the possibility of integrating hydrogen technologies into the Halal framework, a concept traditionally confined to food and finance. Halal, in the context of energy, entails adherence to Islamic principles of sustainability, responsible resource management, and fairness in production and distribution processes. Muslim-majority countries, particularly members of the Organisation of Islamic Cooperation (OIC), have the potential to lead the hydrogen economy, leveraging their vast renewable energy resources to produce Halal-certified hydrogen. This integration could enable these nations to meet their decarbonization goals while ensuring compliance with Shariah principles. Moreover, the paper explores the role of Islamic finance, particularly Sukuk (Islamic bonds), in funding hydrogen infrastructure, thereby aligning financial investments with Islamic ethical principles. By establishing Halal certification standards for hydrogen, OIC countries can position themselves as leaders in the global energy transition. This paper provides policy recommendations for the development of hydrogen technologies in OIC countries, addressing the challenges of technology, market development, and regulation. It also explores the opportunities for collaboration among OIC nations, which could catalyse the creation of a Halal hydrogen market that aligns with both Islamic values and global sustainability goals.