Islamic finance explores green market

Author: | Published: 24 Apr 2017

Because of the similarities they share with conventional bonds, sukuk may be a solution to help finance green infrastructure and climate-related initiatives. But some obstacles remain

Within the conventional finance space, sustainable financing mechanisms have proved a successful method of funding environmental and social infrastructure projects. As the need for infrastructure finance grows and sovereign wealth and pensions funds seek to diversify their investment portfolios, sukuk have been touted as cost-effective instruments to deliver diversified funding. Although it is widely accepted that the principles of Islamic finance include environmental and social protection, a pure green sukuk has yet to be brought to the market....