Islamic finance has witnessed a rapid growth in recent years. In 2019, the value of Islamic banking assets was estimated to be around USD 1.99 trillion. Within this area of finance is growing interest in environmentally themed products. “Green Sukuk” are Shari’ah compliant investments in renewable energy and other environmental assets. Proceeds are used to finance construction, to refinance construction debt, or to finance the payment of a government-granted green subsidy. They may involve securitizing future income cash flows from ring-fenced projects or assets with specific criteria attached.
This session will feature a discussion with stock exchanges that are innovating in the area of green Islamic finance, investors and standard setters in the area. The session will chart the progress to date and seek to provide insight on the future evolution of this space.
Issues to be addressed
- What are stock exchanges doing to promote green Islamic finance?
- What are the key products in this area and what is the forecast for new products?
- What is needed to ensure the Islamic green finance ecosystem grows in the future and how can exchanges and regulators assist?
- What are key challenges that need to be addressed?