The relationship between pollutant emissions and economic development has attracted considerable attention. Based on the results of environmental Kuznets curve (EKC) analysis, environmental problems arising from greenhouse gas (GHG) emissions and economic development form an inverse U-shaped relationship. Kuznets’ Environmental Curve suggests that reducing environmental damage often comes at the cost of economic growth. However, stopping economic development to reduce environmental problems can potentially cause social problems. This study explores how waqf, can help bridge the gap between economic development and environmental sustainability. Using Panel Logit Regression, we analyzed data from 33 provinces in Indonesia. Key variables included the National Waqf Index, forest area, waqf land area, regional GDP growth (y-o-y), and CO2 emissions. The data were sourced from the Indonesian Waqf Board, Climate World Data, the Ministry of Environment, and Bank Indonesia. Findings show that CO2 emissions negatively affect regional economic growth. Conversely, better waqf governance, as measured by the waqf index, positively influences economic performance. This highlights the potential of Islamic social finance to support green economic development. Specifically, waqf can serve not only as a spiritual and charitable tool but also as a practical economic instrument that contributes to both environmental protection and long-term regional growth.