Green Islamic Sukuk as a Tool for Financing Various Projects: The Malaysian Experience as a Model

Abstract

This paper investigates the role of Green Islamic Sukuk as an innovative financing instrument for sustainable investment and infrastructure projects. It seeks to elucidate the conceptual foundations of Green Sukuk and their contribution to promoting environmentally responsible economic growth within the framework of Islamic finance. Given Malaysia’s pioneering experience in issuing and developing Green Islamic Sukuk, the study highlights the major projects financed through these instruments, particularly in renewable energy and green infrastructure sectors. The findings underscore Malaysia’s successful integration of Sharia-compliant finance with sustainable development objectives, positioning the country as a global leader in the transition toward a green economy.