THE NEXUS BETWEEN SYARIAH-COMPLIANT GREEN FINANCING AND CLIMATE RESILIENCE: A COMPARATIVE ANALYSIS OF SUKUK AND CONVENTIONAL GREEN BONDS
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October 15, 2025
April 27, 2026
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Climate Resilience, Green Bonds, Sukuk
Abstract
Climate change intensifies systemic risks, requiring innovative financing instruments that align environmental sustainability with financial stability. Green financing has emerged as a critical mechanism, yet differences between Shariah-compliant instruments and conventional models remain underexplored. This study aims to examine the nexus between sukuk and conventional green bonds in enhancing climate resilience through a comparative analytical framework. The research employs a quantitative–comparative design using secondary data from global financial and environmental databases, supported by institutional and structural analysis. Findings reveal that sukuk demonstrates stronger alignment with long-term climate resilience due to asset-backed structures, ethical governance, and direct linkage to real-sector projects, while conventional green bonds exhibit greater scalability and market penetration, enabling broader capital mobilization. Evidence also indicates that hybrid approaches combining both instruments may optimize resilience outcomes by integrating ethical accountability with financial efficiency. The study concludes that financial structure and governance principles significantly influence the effectiveness of green financing in addressing climate challenges. These insights contribute to the advancement of sustainable finance discourse by integrating Islamic financial perspectives into global climate resilience strategies, while offering policy-relevant implications for developing inclusive and adaptive financing ecosystems.
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Copyright (c) 2026 Ari Purwanti, Daniyar Satybaldy, Erik Johansson
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