THE ROLE OF GREEN SUKUK IN REALIZING THE SUSTAINABLE DEVELOPMENT GOALS 2030 AGENDA
Downloads
The purpose of this study is to investigate green sukuk and its influence on the implementation of the Sustainable Development Goals (SDGs), as well as to identify and analyze the factors that have an effect on those activities. This research is carrying out a systematic literature review in order to locate, examine, and analyze any and all relevant research that is currently available in order to provide answers to the research questions. In spite of the fact that it is such a great innovative investment instrument and that it is doing well with getting positive response from the market, green sukuk still face many challenges, and there is still room for improvement to bring up its potentials and maximize its social impact for the most recent SDGs agenda. Green sukuk have developed into Islamic financial instruments that are in demand by the public because of their ethical responsibility towards the environment. Green sukuk provides benefits not only for all stakeholders involved in it but also for the environment. The government, as a regulator, is expected to be able to provide support through various strategic policies to support green sukuk, such as by developing a more substantial legal basis and incentives in the form of tax reductions, as well as strengthening information and literacy to the public about green sukuk.
Aassouli, D., Asutay, M., Mohieldin, M., & Nwokike, T. C. (2018). Green Sukuk, Energy Poverty, and Climate Change: A Roadmap for Sub-Saharan Africa. Green Sukuk, Energy Poverty, and Climate Change: A Roadmap for Sub-Saharan Africa, December. https://doi.org/10.1596/1813-9450-8680
Abdullah, M. S., & Keshminder, J. S. (2022). What drives green sukuk? A leader’s perspective. Journal of Sustainable Finance & Investment, 12(3), 985–1005. https://doi.org/10.1080/20430795.2020.1821339
Abdullah, N., & Nayan, M. A. (2020). Green Sukuk: Financing The Future to Sustainable Environment. International Journal of Zakat and Islamic Philanthropythropy, 2(2), 14–23.
Abubakar, L., & Handayani, T. (2020). Green Sukuk : Sustainable Financing Instruments for Infrastructure Development in Indonesia. Advances in Social Science, Education and Humanities Research, 436(April 2016), 983–987.
Afshar, T. A. (2013). Compare and Contrast Sukuk ( Islamic Bonds ) with Conventional Bonds , Are they Compatible ? Journal of Global Business Management, 9(1), 44–52.
Ahmed, E. R., Islam, A., & Ku Ariffin, K. H. (2015). An Empirical Analysis on Legitimacy of Sukuk: An Insight of Malaysian Sukuk. Asian Social Science, 11(13), 84–97. https://doi.org/10.5539/ass.v11n13p84
Alam, N., Duygun, M., & Ariss, R. T. (2016). Green Sukuk: An Innovation in Islamic Capital Markets. In Energy and Finance (pp. 167–185). https://doi.org/10.1007/978-3-319-32268-1
Alqahtani, D. S. (2012). Redefining Sukuk as an InvestmentInstrument, Not a Debt One. The Journal of Investing, 21(4), 190–195. https://doi.org/10.3905/joi.2012.21.4.190
Aryal, J. P., Sapkota, T. B., Khurana, R., Khatri-Chhetri, A., Rahut, D. B., & Jat, M. L. (2020). Climate change and agriculture in South Asia: adaptation options in smallholder production systems. In Environment, Development and Sustainability (Vol. 22, Issue 6). Springer Netherlands. https://doi.org/10.1007/s10668-019-00414-4
Azhgaliyeva, D., Kapoor, A., & Liu, Y. (2020). Green bonds for financing renewable energy and energy efficiency in South-East Asia: a review of policies. Journal of Sustainable Finance and Investment, 10(2), 113–140. https://doi.org/10.1080/20430795.2019.1704160
Bacha, O. I., & Mirakhor, A. (2018). Funding development infrastructure without leverage: A risk-sharing alternative using innovative sukuk structures. World Economy, 41(3), 752–762. https://doi.org/10.1111/twec.12512
Budiarso, A. (2019). Kebijakan Pembiayaan Perubahan Iklim: Suatu Pengantar. In 2019 (Vol. 1).
Campisi, D., Gitto, S., & Morea, D. (2018). Shari’ah-Compliant Finance: A Possible Novel Paradigm for Green Economy Investments in Italy. Sustainability, 10(11), 3915. https://doi.org/10.3390/su10113915
Chandel, S. S., Shrivastva, R., Sharma, V., & Ramasamy, P. (2016). Overview of the initiatives in renewable energy sector under the national action plan on climate change in India. Renewable and Sustainable Energy Reviews, 54, 866–873. https://doi.org/10.1016/j.rser.2015.10.057
Gallego-Schmid, A., Chen, H. M., Sharmina, M., & Mendoza, J. M. F. (2020). Links between circular economy and climate change mitigation in the built environment. Journal of Cleaner Production, 260, 121115. https://doi.org/10.1016/j.jclepro.2020.121115
Ghorchi, M., & Kavianirad, J. (2019). A Study of the Consistency of Urban Diplomacy with Foreign Policy of the Islamic Republic of Iran; Case Study: Sister Cities of Tehran. Geopolitics Quarterly, 15(1), 60–84.
Harcourt, W. (2005). The Millennium Development Goals: A missed opportunity? Development, 48(1), 1–4. https://doi.org/10.1057/palgrave.development.1100117
Hariyani, H. F., & Kusuma, H. (2020). Green Sukuk-Based Project on Sustainable Waste Management in Indonesia. Al Iqtishad, 12(2). https://doi.org/10.15408/aiq.v12i2.15129
Harrison, P. A., Dunford, R. W., Holman, I. P., & Rounsevell, M. D. A. (2016). Climate change impact modelling needs to include cross-sectoral interactions. Nature Climate Change, 6(9), 885–890. https://doi.org/10.1038/nclimate3039
Hudaefi, F. A. (2020). How does Islamic fintech promote the SDGs? Qualitative evidence from Indonesia. Qualitative Research in Financial Markets, 12(4), 353–366. https://doi.org/10.1108/QRFM-05-2019-0058
Ibrahim, A. J., & Shirazi, N. S. (2020). The role of islamic finance in fostering circular business investments: The case of oic countries. Journal of Economic Cooperation and Development, 41(1), 89–120.
ICMA. (2018). Green Bond Principles. Voluntary Process Guidelines for Issuing Green Bonds. The Green Bond Principles, June, 8.
ILO. (2018). The employment impact of climate change adaptation. International Labour Organization (ILO) for the G20 Climate Sustainability Working Group (CSWG) under the Argentine G20 Presidency in 2018.
ILO. (2021). ILO Monitor : COVID-19 and the world of work . Eighth edition Updated estimates and analysis Return to workplace and vaccination : Part I . Labour market developments in 2020 – 21 : Increasing disparities (Issue October).
Kammer, A., Norat, M., Piñón-Farah, M. A., Prasad, A., Towe, C. M., & Zeidane, Z. (2015). Islamic Finance: Opportunities, Challenges, and Policy Options. Staff Discussion Notes, 2015(005), 38. https://doi.org/10.5089/9781498325035.006
Keshminder, J. S., Abdullah, M. S., & Mardi, M. (2022). Green sukuk – Malaysia surviving the bumpy road: performance, challenges and reconciled issuance framework. Qualitative Research in Financial Markets, 14(1), 76–94. https://doi.org/10.1108/QRFM-04-2021-0049
KLHK. (2020). Roadmap Nationally Determined Contribution (NDC) Adaptasi Perubahan Iklim. 4, 763–773.
Liu, F. H. M., & Lai, K. P. Y. (2021). Ecologies of green finance: Green sukuk and development of green Islamic finance in Malaysia. Environment and Planning: A Economy and Space, 53(8). https://doi.org/10.1177/0308518X21103834
Matiu, M., Ankerst, D. P., & Menzel, A. (2017). Interactions between temperature and drought in global and regional crop yield variability during 1961-2014. PLoS ONE, 12(5), 1–23. https://doi.org/10.1371/journal.pone.0178339
Meo, M. S., & Abd Karim, M. Z. (2022). The role of green finance in reducing CO 2 emissions : An empirical analysis. Borsa Istanbul Review, 22(1), 169–178. https://doi.org/10.1016/j.bir.2021.03.002
Moghul, U. F., & Safar-Aly, S. H. K. (2015). Green Sukuk: The Introduction of Islam’s Environmental Ethics to Contemporary Islamic Finance. THE GEORGETOWN INT’L ENVTL.LAW REVIEW.
Morea, D., & Poggi, L. A. (2017). An innovative model for the sustainability of investments in the wind energy sector: The use of green sukuk in an Italian case study. International Journal of Energy Economics and Policy, 7(2), 53–60. https://dergipark.org.tr/en/pub/ijeeep/issue/31921/351178?publisher=http-www-cag-edu-tr-ilhan-ozturk
Munir, S., Masruro, U., Fawaiq, A., & Merlinda, S. (2020). Green Sukuk: Indonesian Youth Investment Prospects for Environmental Sustainability. Economics Business and Organization Research, 140–147.
Musari, K. (2021). Esham, the Origin of Sukuk for Facing the Crisis: Historical Experience. IQTISHODUNA: Jurnal Ekonomi Islam, 10(1), 45–58. https://doi.org/10.36835/iqtishoduna.v10i1.945
Nehal, S. (2021). Green Sukuk–A Viable Global Financing option for Climatic and Environmental Revolution (A Practical Instrument for the Development of Sustainable Energy Projects …. Journal of Socio-Economic and Religious Studies, 1(2), 53–72.
Norouzi, N., Zarazua de Rubens, G., Choubanpishehzafar, S., & Enevoldsen, P. (2020). When pandemics impact economies and climate change: Exploring the impacts of COVID-19 on oil and electricity demand in China. Energy Research and Social Science, 68(June), 101654. https://doi.org/10.1016/j.erss.2020.101654
OECD. (2015). Policy Perspectives: Green Bonds - Mobilising the debt capital markets for a low-carbon transition. OECD Publishing, OECD/Bloomberg Philanthropies.
Önder, Y. K. (2016). Asset backed contracts and sovereign risk. Journal of Economic Behavior and Organization, 132, 237–252. https://doi.org/10.1016/j.jebo.2016.10.006
Ramadhan, I. A., & Wirdyaningsih, W. (2019). Green Sukuk Issuance as an Investment Instrument for Sustainable Development. The International Conference on Law, Governance and Islamic Society (ICOLGIS 2019). https://doi.org/10.2991/assehr.k.200306.189
Rasoulinezhad, E., & Taghizadeh-Hesary, F. (2022). Role of green finance in improving energy efficiency and renewable energy development. Energy Efficiency, 15(2). https://doi.org/10.1007/s12053-022-10021-4
Richardson, E. (2020). The UAE and Responsible Finance—Can Responsible Finance Ṣukūk Help the UAE in Fulfilling Its Sustainability Ambitions? Arab Law Quarterly, 34(4), 313–355. https://doi.org/10.1163/15730255-BJA10013
Risanti, M. A., Alwyni, F. A., & Nadya, P. S. (2020). Peran Green Sukuk dalam Mewujudkan Pembangunan yang Berkelanjutan. Prosiding Konferensi Nasional Ekonomi Manajemen Dan Akuntansi (KNEMA), 1177, 1–13.
Rocque, R. J., Beaudoin, C., Ndjaboue, R., Cameron, L., Poirier-Bergeron, L., Poulin-Rheault, R. A., Fallon, C., Tricco, A. C., & Witteman, H. O. (2021). Health effects of climate change: An overview of systematic reviews. BMJ Open, 11(6). https://doi.org/10.1136/bmjopen-2020-046333
Ross, U. (2015). Green bond drivers. London: HSBC.
Safari, M., Ariff, M., & Shamsher, M. (2013). Do Debt Markets Price Sukūk and Conventional Bonds Differently? Journal of King Abdulaziz University, Islamic Economics, 26(2), 113–149. https://doi.org/10.4197/Islec.26-2.4
Santoso, I. R. (2020). Green sukuk and sustainable economic development goals: Mitigating climate change in Indonesia. Al-Thaqafa, 10(1), 18–26.
Septiana, E., & Dewi, G. (2008). Challenges and Opportunities for the Development of Green Sukuk in Indonesia. 18488–18500.
Siswantoro, D., & Surya, H. V. (2021). Indonesian Green Sukuk (Islamic Bond) of climate change: A revisited analysis. IOP Conference Series: Earth and Environmental Science, 716(1). https://doi.org/10.1088/1755-1315/716/1/012044
Statista. (2022a). Economic Losses of Weather, Climate, and Water Related Disasters Between 1970 and 2019 (in Billion US Dollars).
Statista. (2022b). Policy & Society Global Climate Change.
Suherman, S., Noor, I., & Manzilati, A. (2019). Identifikasi Potensi Pasar Green Sukuk Republik Indonesia. Human Falah: Jurnal Ekonomi Dan Bisnis Islam, 6(1), 37–53.
Suwanan, A. F., Putro, A. C., Triyanto, A., Munir, S., & Merlinda, S. (2021). Analysis of the impacts and challenges ofCovid-19 on green sukuk in Indonesia.
Tabassum, A., & Diengdoh, M. (2019). International Journal of Social Science and Economic Research GREEN SUKUK : CHALLENGES AND POTENTIAL. International Journal of Social Science and Economic Research ISSN:, 02, 1461–1470.
The Royal Islamic Strategic Studies Center. (2021). The Muslim 500 - The World’s 500 Most Influential Muslim 2022.
Timur, Y. P., & Herianingrum, S. (2022). the Influence of Entrepreneurship Education on Entrepreneurial Intentions in Generation Z Muslim. Jurnal Ekonomi Dan Bisnis Airlangga, 32(1), 81–92. https://doi.org/10.20473/jeba.v32i12022.81-92
Ullah, S., Harwood, I. A., & Jamali, D. (2018). ‘Fatwa Repositioning’: The Hidden Struggle for Shari’a Compliance Within Islamic Financial Institutions. Journal of Business Ethics, 149(4), 895–917. https://doi.org/10.1007/s10551-016-3090-1
United Nations. (2020). United Nations in Indonesia Country Results Report 2020. March.
Wahab, M. Z. bin H., & Naim, A. M. (2020). Sustainable and Responsible Investment: Concept and The Commonalities with Islamic Financial Institutions. Etikonomi, 19(1). https://doi.org/10.15408/etk.v19i1.13772
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
- Every manuscript submitted to JEBIS must obey to the policy and terms set by Journal of Economics and Business Islamic.
- Publication rights on the contents of manuscript published by JEBIS is owned by JEBIS under consent and approval by the corresponding author(s).
- Full text of electronic publication of manuscripts can be accessed free if used for the purpose of education and research according to copyright regulation.
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material
- You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- You may not use the material for commercial purposes.
- If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.
Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
.png)
