From Malaysia to Indonesia and the UAE to the U.K., countries and institutions are looking to marry Islamic banking with green projects. With mystic peaks, coral reefs, jungles and over 4,000 hours of annual sunlight, Malaysia’s Sabah state is an ideal candidate for clean energy initiatives. But what makes its 50-megawatt solar project, launched in April 2018, special isn’t just its potential to provide electricity to this northern Borneo region. The project is the outcome of funds raised from the world’s first Islamic green bond, with a value of $60 million, unveiled by Malaysia’s Securities Commission in July 2017. Modern Islamic financial tools, such as bonds that adhere to Islamic law and accrue no interest, first emerged in the 1970s. The clean energy projects have grown in demand globally over the past two decades as concerns over climate change have mounted. Now, more and more countries and organizations are beginning to marry the two, opening up the possibility of investing billions in a sector that’s only expected to grow, while also offering the clean energy industry access to money it desperately needs to ramp up society’s transition away from fossil fuels. |