The Conversation – Business + Economy (US)

Why Islamic Finance Could Provide an Ethical Model for Funding the Green Transition

Islamic finance, anchored in asset‑backed transactions and social responsibility, is emerging as a credible alternative to conventional green finance. Its core instrument, green sukuk, ties investor capital directly to renewable‑energy and sustainable‑infrastructure projects, ensuring profits stem from real economic activity. The UK, already a global hub for both green and Islamic finance, can leverage its fintech ecosystem and supportive regulation to scale ethical financing. Integrating AI‑driven monitoring further curbs greenwashing, bolstering investor confidence in climate‑focused assets.