Green Sukuk as Financing Vehicles for Environmental Sustainability: Lessons from Morocco's Renewable Energy Transition and Comparative Emerging Markets

Abstract This study provides empirical evidence on the role of green sukuk in financing environmental sustainability, with a focus on Morocco's ambitious renewable energy transition. Employing a mixed-methods approach combining quantitative analysis (2013–2024) and qualitative insights from key stakeholders, the research demonstrates how green sukuk have successfully financed landmark projects like the Noor Ouarzazate Solar Complex, achieving annual CO₂ reductions of 760,000 tons. Our comparative analysis with Malaysia, Indonesia, and Saudi Arabia reveals distinct market patterns and mobilization mechanisms for climate finance. The findings highlight critical structural barriers in emerging markets while positioning green sukuk as practical instruments for achieving SDG 7 (Affordable Energy) and SDG 13 (Climate Action). The study offers actionable policy recommendations for market development, emphasizing regulatory flexibility, secondary market creation, and product diversification. This research contributes to the sustainable finance literature by showcasing how Islamic finance instruments can bridge the climate funding gap while promoting financial inclusion.