Perhaps the most critical challenge for green sukuk is gaining popularity among international buyers, due to the lack of standardization and the threat of enforcement. law. Although the creation of the SRI Sukuk framework has partially solved the problem. However, there is no comprehensive framework or regulation on SRI instruments in Malaysia yet. The lack of a standard verification system to measure the performance of green instruments has made investors and issuers think twice before venturing into Green Sukuk. The industry then struggles to keep pace with a rapidly changing regulatory environment and achieve at least local standardization. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get an original essay Additionally, it took some time before the issuance of the first Green Sukuk in Malaysia, despite the SRI Sukuk framework, was been issued. a few years ago. One of the reasons for the slow progress of green instruments in Malaysia is due to the lack of awareness, especially among investors and issuers, about what they could do and what was available. The World Bank has organized a number of workshops to draw traders' attention to Green Sukuk in order to resolve the issue. Reflecting the market's burgeoning reputation, market norms and standards for green bonds continue to evolve. It is fundamentally a self-regulated market, although there are various voluntary guidance, including the Global Capital Markets Association's green bond concepts which were mainstreamed in 2014 via a set of banks and attention particular to the use of products, the way of evaluating tasks and choices, control of recipes and reporting. Not to mention that the secondary market for Green Sukuk is very limited due to the small number of investors holding Sukuk funds and other institutional investors who traditionally seek a strong secondary market to meet investors' liquidity expectations. The challenges are to achieve a crucial mass for the green Sukuk market, which will acquire prime issuance fees and enable buying and selling in the liquid secondary market, which in turn will result in efficient price discovery. This can be recognized by the fact that a more diverse set of issuers and investors are coming to the market to issue and engage in Green Sukuk or ISR issuances across many tenors and threat profiles. The Climate Bond Initiative also provides guidance, focusing on specific sectors. Other challenges of Green Sukuk include investor awareness, demand for energy supply, government support and demand for energy financing. At the same time, as Islamic finance is still fantastically new, it appears to be a logical complement to green bonds, or in this case study Green Sukuk, for which demand is expected to proliferate. As we know, Sukuk are already limited to a pool of ownership using nature, which makes it easy to be green. However, achieving this goal comes with big challenges and achieving a sustainable and mounted Green Sukuk market could be a long road ahead. Green Sukuk may be exposed to a higher risk profile as most environmentally friendly projects require a sophisticated degree of new technologies based on the construction and operation of green technologies. Keep in mind: this is just a sample. Get a custom template.