Main Article Content
Abstract
Purpose – The objective of this study is to provide a comprehensive analysis of the current body of literature on green sukuk.
Methodology – To achieve this objective, this study uses a bibliometric analysis and visualization and mapping of green sukuk research from to 2015-2023. The process of retrieving data through the Scopus database with the keywords "green sukuk" OR "global green sukuk" OR "retail green sukuk" OR "project based green sukuk.”
Findings – The findings included the identification of the most pertinent journals, highly cited articles, prominent authors, nations with prolific publishing in green sukuk, top research affiliations, and journal quality. The study also highlights the fundamental factors that contribute to the emergence of green sukuk, such as the incorporation of Islamic finance principles, adherence to green bond standards, emphasis on sustainability, implementation of environmental, social, and governance (ESG) principles, and the desire of investors to buy such instruments.
Implications – This study examines the effects of government policies on the issuance of green sukuk to support all 2030 Sustainable Development Goals (SDGs) programs, particularly in mitigating and preventing the negative effects of climate change. Furthermore, it examines the potential consequences for future studies, as other scholars can use the discoveries of this analysis to investigate new research prospects concerning the correlation between green sukuk and sustainable development goals (SDGs).
Originality – The analysis provides insights into the evolution of green sukuk, identifies gaps in current research, and highlights emerging areas of interest.
Keywords
Article Details
Copyright (c) 2024 Syamsi Mustofa Singgih Prayogo, Aji Raditya, Adel Sarea
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References
- Abdullah, M. S., & Keshminder, J. S. (2022). What drives green sukuk ? A leader’s perspective. Journal of Sustainable Finance & Investment, 12(3), 985–1005. https://doi.org/10.1080/20430795.2020.1821339
- Alam, A., Tri Ratnasari, R., Latifathul Jannah, I., & El Ashfahany, A. (2023). Development and evaluation of Islamic green financing: A systematic review of green sukuk. Environmental Economics, 14(1), 61–72. https://doi.org/10.21511/ee.14(1).2023.06
- Alam, N., Duygun, M., & Ariss, R. T. (2016). Green sukuk: An innovation in Islamic capital markets. In Energy and finance: Sustainability in the energy industry (pp. 167-185). Cham: Springer International Publishing.. https://doi.org/10.1007/978-3-319-32268-1_10
- Aliyu, S., Hassan, M. K., Mohd Yusof, R., & Naiimi, N. (2016). Islamic banking sustainability: A review of literature and directions for future research. Emerging Markets Finance and Trade, 1–31. https://doi.org/10.1080/1540496X.2016.1262761
- Azhgaliyeva, D., Kapoor, A., & Liu, Y. (2020). Green bonds for financing renewable energy and energy efficiency in South-East Asia: A review of policies. Journal of Sustainable Finance & Investment, 10(2), 113–140. https://doi.org/10.1080/20430795.2019.1704160
- Bin-Armia, M. S. (2023). Pseudo-environmental values versus ethical spirituality: A study on Indonesian Green sukuk. Petita: Jurnal Kajian Ilmu Hukum dan Syariah, 8(2). https://doi.org/10.22373/petita.v8i2.225
- Corapi, E. (2023). Current issues on the transition to a sustainable economy in the European, Italian and Middle East framework: Green bonds standards and Greenwashing. European Business Law Review, 34(7). https://doi.org/10.54648/eulr2023053
- El Amri, M. C., Mohammed, M. O., & Abdi, M. H. (2021). How green sukuk structure contributes to SDGs?. Islamic Wealth and the SDGs: Global Strategies for Socio-economic Impact, 621-637. Springer International Publishing. https://doi.org/10.1007/978-3-030-65313-2_32
- Endri, E., Tahya Hania, B., & Ma’ruf, A. (2022). Corporate green sukuk issuance for sustainable financing in Indonesia. Environmental Economics, 13(1), 38–49. https://doi.org/10.21511/ee.13(1).2022.04
- Faisal, Y. A., Gunawan, I., Cupian, Hayati, A., Apriliadi, A., & Fajri, M. (2023). Examining the purchase intentions of Indonesian investors for green sukuk. Sustainability, 15(9), Article 9. https://doi.org/10.3390/su15097430
- Fauzi, A., & Tanjung, H. (2017). Risk management in cash waqf linked sukuk based on the waqf core principle: A preliminary study. JES (Jurnal Ekonomi Syariah), 2(1), 50–68. https://doi.org/10.30736/jes.v2i1.27
- Hassan, K., & Lewis, M. (Eds.). (2007). Handbook of Islamic banking. Edward Elgar.
- Hassan, M. K., & Raza Rabbani, M. (2023). Sharia governance standards and the role of AAOIFI: A comprehensive literature review and future research agenda. Journal of Islamic Accounting and Business Research, 14(5), 677–698. https://doi.org/10.1108/JIABR-04-2022-0111
- Ibrahim, A.-J., & Shirazi, N. S. (2020). The role of Islamic finance in fostering circular business investments: The case of OIC countries. Journal of Economic Cooperation and Development, 41, 89–120. https://jecd.sesric.org/pdf.php?file=ART20032003-2.pdf
- Indonesian Ministry of Finance. (2023). DJPPR | Government Securities Framework. https://www.djppr.kemenkeu.go.id/governmentsecuritiesframework
- Ji, C.-J., Li, X.-Y., Hu, Y.-J., Wang, X.-Y., & Tang, B.-J. (2019). Research on carbon price in emissions trading scheme: A bibliometric analysis. Natural Hazards, 99(3), 1381–1396. https://doi.org/10.1007/s11069-018-3433-6
- Karim, S., & Naeem, M. A. (2022). Do global factors drive the interconnectedness among green, Islamic and conventional financial markets? International Journal of Managerial Finance, 18(4), 639–660. https://doi.org/10.1108/IJMF-09-2021-0407
- Keshminder, J. S., Abdullah, M. S., & Mardi, M. (2022). Green sukuk – Malaysia surviving the bumpy road: Performance, challenges and reconciled issuance framework. Qualitative Research in Financial Markets, 14(1), 76–94. https://doi.org/10.1108/QRFM-04-2021-0049
- Keshminder, J. S., Singh, G. K. B., Wahid, Z. A., & Abdullah, M. S. (2019). Green sukuk: Malaysia taking the lead. Malaysian Journal of Consumer and Family Economics, 22(2), 1-22. https://www.majcafe.com/green-sukuk-malaysia-taking-the-lead/
- Laldin, M. A., & Djafri, F. (2021). The role of Islamic finance in achieving sustainable development goals (SDGs). Islamic finance and sustainable development: A sustainable economic framework for muslim and non-muslim countries, 107-126.. https://doi.org/10.1007/978-3-030-76016-8_6
- Lian, Y., Gao, J., & Ye, T. (2022). How does green credit affect the financial performance of commercial banks? Evidence from China. Journal of Cleaner Production, 344, 131069. https://doi.org/10.1016/j.jclepro.2022.131069
- Liu, F. H., & Lai, K. P. (2021). Ecologies of green finance: Green sukuk and development of green Islamic finance in Malaysia. Environment and Planning A: Economy and Space, 53(8), 1896–1914. https://doi.org/10.1177/0308518X211038349
- London Stock Exchange Group. (2023). Green and sustainability sukuk update 2023: Financing a sustainable future. https://www.lseg.com/en/data-analytics/resources/reports/green-sustainability-sukuk-update-2023-report
- Mangunjaya, F. M. (2023). How Islamic tradition benefits nature and climate change action. The Journal of the Siam Society, 111(2), 253-264. https://so06.tci-thaijo.org/index.php/pub_jss/article/view/266952
- Moghul, U. F., & Safar-Aly, S. (2015). Green sukuk: The introduction of Islam’s environmental ethics to contemporary Islamic finance. Georgetown International Environmental Law Review (GIELR), 27(1). https://papers.ssrn.com/abstract=2580864
- Morea, D., & Poggi, L. A. (2017). An innovative model for the sustainability of investments in the wind energy sector: The use of Green sukuk in an Italian case study. International Journal of Energy Economics and Policy, 7(2), 53–60. https://www.econjournals.com/index.php/ijeep/article/view/4073
- Narayan, P. K., Rizvi, S. A. R., & Sakti, A. (2022). Did green debt instruments aid diversification during the Covid-19 pandemic? Financial Innovation, 8(1), 21. https://doi.org/10.1186/s40854-021-00331-4
- Obaidullah, M. (2018). Managing climate change: The role of Islamic finance. IES journal Article, 26(1). https://doi.org/10.2139/ssrn.3303687
- Organization for Economic Cooperation and Development. (2017), Barriers, policy actions and options for green bond market development and growth, in Mobilising Bond Markets for a Low-Carbon Transition, OECD Publishing, Paris. https://doi.org/10.1787/9789264272323-5-en
- Paltrinieri, A., Hassan, M. K., Bahoo, S., & Khan, A. (2023). A bibliometric review of sukuk literature. International Review of Economics & Finance, 86, 897–918. https://doi.org/10.1016/j.iref.2019.04.004
- Prakash, N., & Sethi, M. (2022). A review of innovative bond instruments for sustainable development in Asia. International Journal of Innovation Science, 14(3/4), 630–647. https://doi.org/10.1108/IJIS-10-2020-0213
- Qiu, J.-P., Dong, K., & Yu, H.-Q. (2014). Comparative study on structure and correlation among author co-occurrence networks in bibliometrics. Scientometrics, 101(2), 1345–1360. https://doi.org/10.1007/s11192-014-1315-6
- Raeni, R., Thomson, I., & Frandsen, A.-C. (2022). Mobilising Islamic funds for climate actions: from transparency to traceability. Social and Environmental Accountability Journal, 42(1–2), 38–62. https://doi.org/10.1080/0969160X.2022.2066553
- Reboredo, J. C. (2018). Green bond and financial markets: Co-movement, diversification and price spillover effects. Energy Economics, 74, 38–50. https://doi.org/10.1016/j.eneco.2018.05.030
- Santoso, I. R. (2020). Green sukuk and sustainable economic development goals: Mitigating climate change in Indonesia. Global Journal Al-Thaqafah, 10(1), 18-26. http://www.gjat.my/gjat2020vol10/3.pdf
- Shalhoob, H. (2023). Green sukuk in Saudi Arabia: Challenges and potentials of sustainability in the light of Saudi vision 2030. Journal of Governance and Regulation, 12(4, special issue), 351–360. https://doi.org/10.22495/jgrv12i4siart15
- Supriyadi, A. P., Fidhayanti, D., Ramadhita, R., & Noh, M. S. bin M. (2023). Green sukuk in Indonesia: Unraveling legal frameworks for sustainable Islamic bonds. El-Mashlahah, 13(2), 151–180. https://doi.org/10.23971/el-mashlahah.v13i2.7372
- Suroso, D. S. A., Setiawan, B., Pradono, P., Iskandar, Z. S., & Hastari, M. A. (2022). Revisiting the role of international climate finance (ICF) towards achieving the nationally determined contribution (NDC) target: A case study of the Indonesian energy sector. Environmental Science & Policy, 131, 188–195. https://doi.org/10.1016/j.envsci.2022.01.022
- Tahiri Jouti, A. (2019). An integrated approach for building sustainable Islamic social finance ecosystems. ISRA International Journal of Islamic Finance, 11(2), 246–266. https://doi.org/10.1108/IJIF-10-2018-0118
- Tan, Y.-L., & Mohamad Shafi, R. (2021). Capital market and economic growth in Malaysia: The role of ṣukūk and other sub-components. ISRA International Journal of Islamic Finance, 13(1), 102–117. https://doi.org/10.1108/IJIF-04-2019-0066
- World Bank. (2019). Islamic green finance: development, ecosystem and prospects. World Bank Group. https://documents.worldbank.org/en/publication/documents-reports/documentdetail/591721554824346344/Islamic-Green-Finance-Development-Ecosystem-and-Prospects
- Zulkhibri, M. (2015). A synthesis of theoretical and empirical research on sukuk. Borsa Istanbul Review, 15(4), 237–248. https://doi.org/10.1016/j.bir.2015.10.001
References
Abdullah, M. S., & Keshminder, J. S. (2022). What drives green sukuk ? A leader’s perspective. Journal of Sustainable Finance & Investment, 12(3), 985–1005. https://doi.org/10.1080/20430795.2020.1821339
Alam, A., Tri Ratnasari, R., Latifathul Jannah, I., & El Ashfahany, A. (2023). Development and evaluation of Islamic green financing: A systematic review of green sukuk. Environmental Economics, 14(1), 61–72. https://doi.org/10.21511/ee.14(1).2023.06
Alam, N., Duygun, M., & Ariss, R. T. (2016). Green sukuk: An innovation in Islamic capital markets. In Energy and finance: Sustainability in the energy industry (pp. 167-185). Cham: Springer International Publishing.. https://doi.org/10.1007/978-3-319-32268-1_10
Aliyu, S., Hassan, M. K., Mohd Yusof, R., & Naiimi, N. (2016). Islamic banking sustainability: A review of literature and directions for future research. Emerging Markets Finance and Trade, 1–31. https://doi.org/10.1080/1540496X.2016.1262761
Azhgaliyeva, D., Kapoor, A., & Liu, Y. (2020). Green bonds for financing renewable energy and energy efficiency in South-East Asia: A review of policies. Journal of Sustainable Finance & Investment, 10(2), 113–140. https://doi.org/10.1080/20430795.2019.1704160
Bin-Armia, M. S. (2023). Pseudo-environmental values versus ethical spirituality: A study on Indonesian Green sukuk. Petita: Jurnal Kajian Ilmu Hukum dan Syariah, 8(2). https://doi.org/10.22373/petita.v8i2.225
Corapi, E. (2023). Current issues on the transition to a sustainable economy in the European, Italian and Middle East framework: Green bonds standards and Greenwashing. European Business Law Review, 34(7). https://doi.org/10.54648/eulr2023053
El Amri, M. C., Mohammed, M. O., & Abdi, M. H. (2021). How green sukuk structure contributes to SDGs?. Islamic Wealth and the SDGs: Global Strategies for Socio-economic Impact, 621-637. Springer International Publishing. https://doi.org/10.1007/978-3-030-65313-2_32
Endri, E., Tahya Hania, B., & Ma’ruf, A. (2022). Corporate green sukuk issuance for sustainable financing in Indonesia. Environmental Economics, 13(1), 38–49. https://doi.org/10.21511/ee.13(1).2022.04
Faisal, Y. A., Gunawan, I., Cupian, Hayati, A., Apriliadi, A., & Fajri, M. (2023). Examining the purchase intentions of Indonesian investors for green sukuk. Sustainability, 15(9), Article 9. https://doi.org/10.3390/su15097430
Fauzi, A., & Tanjung, H. (2017). Risk management in cash waqf linked sukuk based on the waqf core principle: A preliminary study. JES (Jurnal Ekonomi Syariah), 2(1), 50–68. https://doi.org/10.30736/jes.v2i1.27
Hassan, K., & Lewis, M. (Eds.). (2007). Handbook of Islamic banking. Edward Elgar.
Hassan, M. K., & Raza Rabbani, M. (2023). Sharia governance standards and the role of AAOIFI: A comprehensive literature review and future research agenda. Journal of Islamic Accounting and Business Research, 14(5), 677–698. https://doi.org/10.1108/JIABR-04-2022-0111
Ibrahim, A.-J., & Shirazi, N. S. (2020). The role of Islamic finance in fostering circular business investments: The case of OIC countries. Journal of Economic Cooperation and Development, 41, 89–120. https://jecd.sesric.org/pdf.php?file=ART20032003-2.pdf
Indonesian Ministry of Finance. (2023). DJPPR | Government Securities Framework. https://www.djppr.kemenkeu.go.id/governmentsecuritiesframework
Ji, C.-J., Li, X.-Y., Hu, Y.-J., Wang, X.-Y., & Tang, B.-J. (2019). Research on carbon price in emissions trading scheme: A bibliometric analysis. Natural Hazards, 99(3), 1381–1396. https://doi.org/10.1007/s11069-018-3433-6
Karim, S., & Naeem, M. A. (2022). Do global factors drive the interconnectedness among green, Islamic and conventional financial markets? International Journal of Managerial Finance, 18(4), 639–660. https://doi.org/10.1108/IJMF-09-2021-0407
Keshminder, J. S., Abdullah, M. S., & Mardi, M. (2022). Green sukuk – Malaysia surviving the bumpy road: Performance, challenges and reconciled issuance framework. Qualitative Research in Financial Markets, 14(1), 76–94. https://doi.org/10.1108/QRFM-04-2021-0049
Keshminder, J. S., Singh, G. K. B., Wahid, Z. A., & Abdullah, M. S. (2019). Green sukuk: Malaysia taking the lead. Malaysian Journal of Consumer and Family Economics, 22(2), 1-22. https://www.majcafe.com/green-sukuk-malaysia-taking-the-lead/
Laldin, M. A., & Djafri, F. (2021). The role of Islamic finance in achieving sustainable development goals (SDGs). Islamic finance and sustainable development: A sustainable economic framework for muslim and non-muslim countries, 107-126.. https://doi.org/10.1007/978-3-030-76016-8_6
Lian, Y., Gao, J., & Ye, T. (2022). How does green credit affect the financial performance of commercial banks? Evidence from China. Journal of Cleaner Production, 344, 131069. https://doi.org/10.1016/j.jclepro.2022.131069
Liu, F. H., & Lai, K. P. (2021). Ecologies of green finance: Green sukuk and development of green Islamic finance in Malaysia. Environment and Planning A: Economy and Space, 53(8), 1896–1914. https://doi.org/10.1177/0308518X211038349
London Stock Exchange Group. (2023). Green and sustainability sukuk update 2023: Financing a sustainable future. https://www.lseg.com/en/data-analytics/resources/reports/green-sustainability-sukuk-update-2023-report
Mangunjaya, F. M. (2023). How Islamic tradition benefits nature and climate change action. The Journal of the Siam Society, 111(2), 253-264. https://so06.tci-thaijo.org/index.php/pub_jss/article/view/266952
Moghul, U. F., & Safar-Aly, S. (2015). Green sukuk: The introduction of Islam’s environmental ethics to contemporary Islamic finance. Georgetown International Environmental Law Review (GIELR), 27(1). https://papers.ssrn.com/abstract=2580864
Morea, D., & Poggi, L. A. (2017). An innovative model for the sustainability of investments in the wind energy sector: The use of Green sukuk in an Italian case study. International Journal of Energy Economics and Policy, 7(2), 53–60. https://www.econjournals.com/index.php/ijeep/article/view/4073
Narayan, P. K., Rizvi, S. A. R., & Sakti, A. (2022). Did green debt instruments aid diversification during the Covid-19 pandemic? Financial Innovation, 8(1), 21. https://doi.org/10.1186/s40854-021-00331-4
Obaidullah, M. (2018). Managing climate change: The role of Islamic finance. IES journal Article, 26(1). https://doi.org/10.2139/ssrn.3303687
Organization for Economic Cooperation and Development. (2017), Barriers, policy actions and options for green bond market development and growth, in Mobilising Bond Markets for a Low-Carbon Transition, OECD Publishing, Paris. https://doi.org/10.1787/9789264272323-5-en
Paltrinieri, A., Hassan, M. K., Bahoo, S., & Khan, A. (2023). A bibliometric review of sukuk literature. International Review of Economics & Finance, 86, 897–918. https://doi.org/10.1016/j.iref.2019.04.004
Prakash, N., & Sethi, M. (2022). A review of innovative bond instruments for sustainable development in Asia. International Journal of Innovation Science, 14(3/4), 630–647. https://doi.org/10.1108/IJIS-10-2020-0213
Qiu, J.-P., Dong, K., & Yu, H.-Q. (2014). Comparative study on structure and correlation among author co-occurrence networks in bibliometrics. Scientometrics, 101(2), 1345–1360. https://doi.org/10.1007/s11192-014-1315-6
Raeni, R., Thomson, I., & Frandsen, A.-C. (2022). Mobilising Islamic funds for climate actions: from transparency to traceability. Social and Environmental Accountability Journal, 42(1–2), 38–62. https://doi.org/10.1080/0969160X.2022.2066553
Reboredo, J. C. (2018). Green bond and financial markets: Co-movement, diversification and price spillover effects. Energy Economics, 74, 38–50. https://doi.org/10.1016/j.eneco.2018.05.030
Santoso, I. R. (2020). Green sukuk and sustainable economic development goals: Mitigating climate change in Indonesia. Global Journal Al-Thaqafah, 10(1), 18-26. http://www.gjat.my/gjat2020vol10/3.pdf
Shalhoob, H. (2023). Green sukuk in Saudi Arabia: Challenges and potentials of sustainability in the light of Saudi vision 2030. Journal of Governance and Regulation, 12(4, special issue), 351–360. https://doi.org/10.22495/jgrv12i4siart15
Supriyadi, A. P., Fidhayanti, D., Ramadhita, R., & Noh, M. S. bin M. (2023). Green sukuk in Indonesia: Unraveling legal frameworks for sustainable Islamic bonds. El-Mashlahah, 13(2), 151–180. https://doi.org/10.23971/el-mashlahah.v13i2.7372
Suroso, D. S. A., Setiawan, B., Pradono, P., Iskandar, Z. S., & Hastari, M. A. (2022). Revisiting the role of international climate finance (ICF) towards achieving the nationally determined contribution (NDC) target: A case study of the Indonesian energy sector. Environmental Science & Policy, 131, 188–195. https://doi.org/10.1016/j.envsci.2022.01.022
Tahiri Jouti, A. (2019). An integrated approach for building sustainable Islamic social finance ecosystems. ISRA International Journal of Islamic Finance, 11(2), 246–266. https://doi.org/10.1108/IJIF-10-2018-0118
Tan, Y.-L., & Mohamad Shafi, R. (2021). Capital market and economic growth in Malaysia: The role of ṣukūk and other sub-components. ISRA International Journal of Islamic Finance, 13(1), 102–117. https://doi.org/10.1108/IJIF-04-2019-0066
World Bank. (2019). Islamic green finance: development, ecosystem and prospects. World Bank Group. https://documents.worldbank.org/en/publication/documents-reports/documentdetail/591721554824346344/Islamic-Green-Finance-Development-Ecosystem-and-Prospects
Zulkhibri, M. (2015). A synthesis of theoretical and empirical research on sukuk. Borsa Istanbul Review, 15(4), 237–248. https://doi.org/10.1016/j.bir.2015.10.001