Malaysia launches world’s first climate sukuk integrating Islamic finance and carbon credits
Malaysia has marked another milestone in Islamic finance with the launch of the world’s first $28 million climate sukuk
KUALA LUMPUR, Malaysia (MNTV) – Malaysia has marked another milestone in Islamic finance with the launch of the world’s first 118 million Malaysian ringgit ($28 million) climate sukuk, integrating Shariah principles with green finance, digital tokenization and carbon credit monetization, reports Malay Mail.
A sukuk is an Islamic financial certificate similar to a bond but structured to comply with Shariah law, which prohibits interest; instead, investors earn returns from profits generated by the underlying assets or projects.
The sukuk, jointly issued by Hong Kong-listed Unity Group Holdings International Ltd and Tek Securities Ltd under the Labuan IBFC framework, was announced at the Global Islamic Finance Forum (GIFF) 2025.
Backed by 40,400 tonnes of verified carbon credits from the Selangor state government’s Energy Efficiency Initiative, the issuance will fund green infrastructure and low-carbon projects led by Synergy ESCO, including Environmental, Social, and Governance (ESG) lighting upgrades for strata properties across the state.
Unity Group chairman and chief executive Mansfield Wong said the sukuk sets a benchmark for sustainable Islamic investment. “It sets a new standard for Islamic finance to drive climate action and marks Unity Group’s shift from energy services to sustainable fintech provider, delivering both financial returns and measurable environmental value,” he said.
Unity Group said it plans to expand into renewable energy and smart farming ventures as part of Malaysia’s net-zero transition strategy.
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