The Role of Green Sukuk in Maqasid Al-Shariah and SDGs: Evidence from Indonesia

Khairunnisa Musari () and Sutan Emir Hidayat ()
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Khairunnisa Musari: Kiai Haji Achmad Siddiq State Islamic University (UIN KHAS)
Sutan Emir Hidayat: Gunadarma University and National Committee for Islamic Finance and Economy (KNEKS)

A chapter in Islamic Finance, FinTech, and the Road to Sustainability, 2023, pp 181-203 from Palgrave Macmillan

Abstract: Abstract Climate change has overtaken the development agenda as the intensity of rabid weather has increased. Mainly in emerging economies, climate change has proved costly for the low-income population. In line with the funding gap to achieve the Sustainable Development Goals (SDGs), a similar problem arises in the manner of combating climate change. In order to address climate change and greenhouse gas (GHG) emissions, the Islamic financial instrument that is widely embraced is the green sukuk. As with Islamic green financing, the performance of green sukuk must be consistent with maqasid Al-Shariah. Hence, this chapter deliberates on then, as the world’s first sovereign green sukuk, Indonesia’s Green Sukuk, as a case study to understand its impacts on SDGs, including confirming its relevance with maqasid Al-Shariah. In addition, this chapter purposes to address key topics of green sukuk as Islamic green financing by focusing on three main sections namely: (1) Indonesia’s Sovereign Green Sukuk as a national collaborative effort to tackle climate change; (2) the relevance of Indonesia’s Sovereign Green Sukuk with maqasid Al-Shariah; and (3) the role of Indonesia’s Sovereign Green Sukuk in achieving SDGs.

Keywords: Climate change; Green financing; Green framework; Green project; Green report; Green sukuk; Islamic finance; Islamic green financing; Maqasid Al-Shariah; SDGs (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pcichp:978-3-031-13302-2_9

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DOI: 10.1007/978-3-031-13302-2_9

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