Green Sukuk and Sustainable Finance in the OIC and EU Context

This article examines the emergence of green sukuk at the intersection of Islamic finance, sustainable finance, and comparative financial regulation, with a focus on the relationship between the Organization of Islamic Cooperation (OIC) and the European Union (EU). It argues that green sukuk provides an innovative mechanism for financing sustainable development by combining Sharia-compliant financial structures with environmental, social, and governance (ESG) objectives. Through a comparative-law methodology, the article analyses the role of green sukuk in supporting renewable energy and sustainable infrastructure, explores the interaction between EU sustainability regulation and Sharia governance, and highlights the significance of AAOIFI Sharia Standard No. 62 in the evolution of sukuk structures. It concludes that the long-term credibility of green sukuk depends on stronger transnational governance capable of ensuring both environmental integrity and Sharia compliance, making these instruments a potentially important component of global sustainable finance.