Islamic Finance Strengthens Green Finance Credibility

A recent analysis argues Islamic finance can strengthen green finance by linking capital directly to real economic activities, reducing greenwashing. It highlights green sukuk—asset-backed Islamic bonds—with ESG sukuk issuance expected to surpass US$70 billion globally this year, and discusses Islamic fintech and ethical AI for monitoring and transparency. The piece suggests the UK could pilot such instruments to complement existing green bonds and broaden investor access.