Islamic finance for green initiatives: An unfulfilled potential

  • Analysts see a clear affinity between Shariah-compliant financing and saving the planet for future generations but this has translated into precious few on-ground programmes.
  • Islamic financing solutions for sustainability have largely focused on sukuk issuance and the future, say analysts, lies in growth economies in the Islamic world adopting green financing for infrastructure development.
  • The green sukuk from Malaysia was the country’s first ever, and issued in July this year under the nation’s Sustainable and Responsible Investment (SRI) Sukuk framework that was introduced in 2014. The 250 million Malaysian Ringgit ($58.56 million) issue was from Tadau Energy to fund a 50MW solar energy project.
  • While there have been only a few on-ground examples of Islamic financing for green projects there are several multilateral and global plans and initiatives addressing related issues.
  • At the UNEP Finance Initiative’s global roundtable hosted in Dubai by the UAE Ministry of Climate Change and Environment (MoCCAE) in 2016, one of the key questions addressed was how Islamic finance can contribute to the growth of the sustainability sector.

Read in detail here!


We will be happy to hear your thoughts

Leave a reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Things Muslims Like - Halal Products, News, Gifts, Fashion, Travel & More
Login/Register access is temporary disabled