“Development and evaluation of Islamic green financing: A systematic review of green sukuk”

Azhar Alam, Ririn Tri Ratnasari, Isnani Latifathul Jannah, Afief El Ashfahany

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)


The threat of the global climate crisis demands improvement and adjustment from various sides, including the financial sector. Islamic finance responds to environmental responsibility by presenting environmentally friendly financing products in green sukuk. This study aims to show the development trend of the number of publications in green sukuk and systematize the results of studies that explain the development and evaluation of the emergence of green sukuk investments. This study analyzed 15 publications on green sukuk during the 2016-2022 years indexed by the Scopus database. As for methodology, the descriptive analysis was used to explain the green sukuk data quantitatively; the synthesis analysis was used to describe data based on four directions (the development of models (10 sources), opportunities (12 sources), challenges (12 sources), and evaluations of green sukuk (10 sources). Preferred Reporting Items for Systematic Review and Meta-Analyses standard were used to choose samples for this investigation. The green sukuk challenge is dealing with the sukuk market after the pandemic. Several evaluation findings regarding managing commitment from the government and investors for the renewable energy sector and efforts to provide low-cost sukuk financing and risk minimization are found. Green sukuk demands efficient management to be more viable, competitive, and attractive to investors if the operational area supports it. Green sukuk projects face expanding green funding, global climate financing, managing renewable energy, and validating greenhouse gas emissions. The green stock market reaction requires coordination amongst economic subsectors.

Original languageEnglish
Pages (from-to)61-72
Number of pages12
JournalEnvironmental Economics
Issue number1
Publication statusPublished - 2023


  • Islamic bond
  • Islamic finance
  • Scopus database
  • descriptive analysis
  • sukuk
  • synthesis analysis environmental finance


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