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.
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References
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