The Challenges of Green Sukuk Policy Implementation for Achieving Sustainable Environment

Abstract

In this decade, the entire world realized that a healthy environment is needed for mitigating catastrophic issues created by the nature. Thus, the green bond was introduced in 2007, and the green Sukuk was issued in 2017. Malaysia took the pioneering role for issuing green Sukuk and issued ten green Sukuk within 2020. Furthermore, Indonesia has taken initiative for issuing five green Sukuk in 2018. Besides that, Saudi Arabia issued two green Sukuk and the United Arab Emirates also issued two green Sukuk in 2019. As the green Sukuk was issued in various sectors which created a curiosity to know, what are the policies were created, how did they apply and how do they impact on the environment. Accordingly, the study aims to find out implemented policies to mitigate challenges for issuing all green Sukuk in four nations. So, this study was conducted through case studies on green Sukuk by analysing available data from the green Sukuk issuers, ministries, published literature and others. The study found that green Sukuk issuers were implemented the same policies that applied to issue green bonds and still remain a great challenge. It is because, every nation has a different geographical atmosphere, culture, religion and human behaviours. In addition, the study also found that all of the green Sukuk-issued projects were selected to reduce air pollution. Therefore, further research is needed on policy and project creation according to the nation for controlling other factors, such as; pollution (water, land, and sound), deforestation, and others.

Do Global Green Sukuk affect on Climate Change? Evidence in Issuing Countries

“…Green sukuk studies are in the spotlight because they are one of the green funding innovations that support a green economy in the process of sustainable development (Musari, 2022;Pathan et al, 2022;Rahman and Hanife, 2022;Boukhatem, 2022;Ramadhan and Wirdyanigsih, 2020;Anindito Mujizat, 2021;Risanti et al, 2020;Abdullah and Nayan, 2020;Fitrah and Soemitra, 2022). In order to achieve the SDGs with adequate consideration for the environment and to realize a better economy in the future, Suwanan et al (2022) emphasize the significance of continuing sustainable development from the MDGs to SDGs.…”

Factors influencing the individual investors of Bangladesh to opt for investment in ṣukūk

“…In Bangladesh, only a few studies have been conducted on s _ uk uk. Some studies have discussed the prospects and challenges of introducing the new instrument (Uddin et al, 2018;Rahman et al, 2021;Ullah et al, 2022). There are several studies on the establishment of a legal framework for s _ uk uk in Bangladesh (Hasan, 2022;Rahman et al, 2022).…”

“…Some studies have discussed the prospects and challenges of introducing the new instrument (Uddin et al, 2018;Rahman et al, 2021;Ullah et al, 2022). There are several studies on the establishment of a legal framework for s _ uk uk in Bangladesh (Hasan, 2022;Rahman et al, 2022). Ashraf (2023) recently interpreted the relationship between religious intention and actual buying behavior in s _ uk uk.…”

“…Some studies have discussed the prospects and challenges of introducing the new instrument (Uddin et al. , 2018; Rahman et al. , 2021; Ullah et al.…”

“…, 2022). There are several studies on the establishment of a legal framework for ṣukūk in Bangladesh (Hasan, 2022; Rahman et al. , 2022).…”