Develop a Wide and Deep Market for Green Sukuk, or Risk Missing the Upcoming Green Bond Bonanza

Europe will raise 30% of funding for its pandemic recovery plan with green bonds, a big expansion of the marketA broader market combined with more investor interest in ‘green’ and ‘climate’ focus will heighten evidence of a green premium (the ‘greenium’)Sukuk markets could see a benefit from flows propelled by European policy and by climate-related financial impacts, but only if there is a sufficiently broad investable market of green Sukuk developed beginning today

The European Recovery Plan to promote an economic rebound after the COVID-19 pandemic has pledged that 30% of the €750 billion to be raised would be done via green bonds since the projects would qualify based on their use of proceeds. This would b...