Innovation in Islamic Finance: Green Sukuk for SDGs
In 2015, the United Nations (UN) established a blueprint for addressing economic, social, governance, and environmental challenges – the Sustainable Development Goals (SDGs). It is estimated that funds of up to US$7trn are required on an annual basis for initiatives aligned to the SDGs.
Islamic finance provides an opportunity for countries to raise funds towards SDG initiatives that to date has been tapped only to a limited extent. Islamic bonds (called sukuk) provide an established mechanism for raising funds in both Muslim countries and non-Muslim countries.