This article critically reviews the notion of State sovereignty under international law and argues that to achieve eco-justice as well as sustainable development goals, a restrictive and ecological approach needs to be taken toward the principle of states’ permanent sovereignty over natural resources. Environmental sustainability requires states’ environmental obligations to be identified as erga omnes so they can be addressed toward the international community as a whole and fall within the scope of article 48 of the ILC Articles on States Responsibility. Interestingly, in complete alignment with this progressive interpretation, sustainable utilization of natural resources has a longstanding foundation in Islam. According to some Islamic scholars, the Islamic notion of Al-Anfal implies that the Islamic States cannot own the natural wealth and resources in their territories, but should only manage them for the benefit of all generations in a manner that the origin of the source would be preserved at all times. Therefore, suggested transformation can be acceptable to the Muslim majority countries. This research takes a normative approach and a library research method to the inevitable development that needs to take place in international law.