The Role of Islamic Financial Instruments in Supporting Sustainable Development Goals: An Analysis of Green Sukuk

This article analyzes the role of Islamic financial instruments, particularly the
Green Sukuk, in supporting the achievement of the Sustainable Development
Goals (SDGs). Green Sukuk is a sharia-based financing instrument aimed at
financing environmentally friendly projects, in line with sustainability values in
Islam. This research was conducted with a qualitative approach through in-depth
literature studies and library research to explore the potential and contribution
of Green Sukuk in encouraging sustainable development. The results of the study
show that Green Sukuk can play a strategic role in providing financing for
projects that support environmental conservation, renewable energy, and
sustainable management of natural resources. In addition, the implementation
of Green Sukuk also shows compliance with sharia principles that focus on justice
and balance of the ecosystem, thereby creating added value for society and the
environment. However, there are still challenges in the implementation of Green
Sukuk, such as regulations, transparency, and reporting standards that need to
be harmonized. This study is expected to provide a deeper understanding of the
contribution of Islamic financial instruments in supporting the SDGs and
encourage the further development of sustainable financial instruments in
accordance with sharia principles.