Investigation of Islamic Sukuk for Renewable Energy Development with Green Bond Policy

Lack of resources, high pollution, environmental crises and energy security are the main obstacles in the way of using fossil fuels for energy generation. Due to increasing environmental crises in addition to stated obstacles, governments agreed about limiting global warming below ۲ degrees Celsius in Kyoto and Paris agreements. Development of renewable and clean energies is essential for increasing reliability and having sustainable supply chain in energy markets. Supportive policies, including green bonds, can help us toward goals in compliance with environmental concerns. This research investigates Islamic Sukuk framework in different countries with green bond policy and evaluates policy implication based on economic growth and CO۲ emission. By prioritizing the countries according to the evaluation, the most suitable Sukuk frameworks for green bond policy are presented for accelerating the renewable energy development and reducing carbon emission. These bonds are the most suitable option and expansion of financial markets and instruments can empower them in future.

Keywords:

Carbon Dioxide Emission , Economic Growth , Green Bond Policy , Sukuk , Supportive Policy