development demand the presence of innovative financial instruments that are not only economically efficient, but also aligned with ethical and sustainability principles. Green sukuk, as a form of integration between Islamic finance and green finance, has become a strategic solution in answering these challenges. This research aims to analyze the role, challenges, and strategic potential of green sukuk in supporting the sustainable development goals (SDGs) agenda, with a focus on the Indonesian context. The method used is a qualitative approach through literature study. The results showed that green sukuk has been used significantly in financing green projects such as renewable energy, sustainable transportation, and waste management. This instrument has received a positive response from the market, and supports the principles of maqāṣid al-sharī'ah, particularly in the aspects of environmental protection (ḥifẓ al-bi'ah) and wealth (ḥifẓ al-māl). However, there are a number of key challenges, including low investor literacy, limited fiscal incentives, and suboptimal environmental impact reporting. This research also underscores the importance of cross-sector synergy, strengthening regulations, and participation of the private sector and the younger generation in expanding the green sukuk market. This research contributes theoretically in strengthening the literature on the integration of Islamic values and sustainable development, as well as formulating policy recommendations for the optimization of green sukuk as an inclusive, ethical, and future-oriented financing instrument.
Yenie Eva Damayanti (Tue,) studied this question.