The Role of Green Sukuk In Promoting Investment for Green Economic Growth
Ibnu Affan (a*), Sri Herianingrum (b), Alissa Nur Azizah (c)

a) Islamic Economics Study Program, Faculty of Economic and Business, Airlangga University, Surabaya, Indonesia
ibnu.affan-2022[at]feb.unair.ac.id

b) Islamic Economics Study Program, Faculty of Economic and Business, Airlangga University, Surabaya, Indonesia
sri.herianingrum[at]feb.unair.ac.id

c)Islamic Economics Study Program, Faculty of Economic and Business, Airlangga University, Surabaya, Indonesia
alissa.nur.azizah-2022[at]feb.unair.ac.id

Abstract

This study aims to find out what are the challenges and opportunities in the development of green sukuk and what is the role of green sukuk in driving the rate of investment for green economic growth. The research method used is a systematic literature review with secondary data obtained from 15 relevant references on the topic of green financing and green sukuk to answer research questions. The results show that green sukuk is an innovative Islamic financial instrument not only for its role in the economic aspect but also can have an impact on environmental aspects. However, in its development there are still challenges that must be resolved such as the lack of promotion from the government regarding this instrument and the low public awareness of the importance of sharia investment which has a correlation with environmental improvement. Therefore, cooperation and collaboration is needed from various parties such as regulators, practitioners, academics, and the public so that the development of green sukuk becomes more massive.

Keywords: Investment, Green Economic Growth, Green Sukuk

Topic: Islamic capital market