Combating Climate Change in Malaysia
One of the main purposes for the issuance of sukuk is to fund large-scale development projects. With the rising interest for responsible finance and investment, Muslim scholars propose that besides utilizing sukuk an instrument to finance purely developmental projects, sukuk could be used as a vehicle to raise funds for financing various projects that meet the criteria of social and responsible finance. Innovation in the sukuk issuance, for example green sukuk, has played a prominent role in financing infrastructure and renewable energy projects. With the introduction of Sustainable Development Goals (SDGs) by the United Nations in 2015 that strategize to be a blueprint to achieve a sustainable future for all, green sukuk is seen as one of the most potential instruments that can be used in achieving such SDGs. Green sukuk stands with an advantage of a Shariah-compliance financing instrument which, besides meeting the demands from the investors and stakeholders, is also able to provide for a better alternative in a term of social finance discourse. Looking closely into the initiative in combating climate change in Malaysia, this research qualitatively investigates the potential and roles of green sukuk in leading the trend in eco-friendly investments and development projects. The research found that there is a positive trend among investors towards issuing green sukuk that are based on eco-friendly investments and development projects.