GREEN SUKUK ISSUANCE AND SUSTAINABLE DEVELOPMENT GOALS ACHIEVEMENT IN ASEAN
DOI:
https://doi.org/10.54783/r0e4g851Keywords:
Green Sukuk, Sustainable Development Goals, ASEAN, Islamic Finance, Panel Data Analysis, Climate Action.Abstract
The global financing gap for achieving the SDGs exceeds USD 2.5 trillion annually, requiring innovative instruments. Green sukuk Shariah-compliant bonds dedicated to environmental projects have grown rapidly in ASEAN, yet evidence of their development impact is scarce. This study uses panel data (2018–2025) from five ASEAN countries to examine the effect of green sukuk issuance on SDG Index scores, focusing on SDGs 7 (Clean Energy), 11 (Sustainable Cities), 13 (Climate Action), and 15 (Life on Land). Results show a significant positive impact, especially on clean energy and climate action, though diminishing returns appear at high issuance levels and outcomes vary by market maturity. These findings provide the first empirical proof that green sukuk can advance SDG achievement in ASEAN, offering guidance for policymakers and Islamic financial institutions.
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