Financing social infrastructure projects: A case for sustainable Islamic finance standards

The ICMA Green Bonds Principles (GBP) have provided issuers with a voluntary framework since 2014. In that time period issuance of green bonds has risen to over US$ 150 billion and the GBP have achieved the status of best practice.

For environmentally and socially sustainable finance to flourish there must be an alignment of investor interests (and appetite for risk) with issuer goals (and commitments). Green bonds have led the way as they move into mainstream finance. The convergence of diverse issuers and a varied investor base have provided a point of reference for innovative approaches to addressing environmental and social funding gaps. Not surprisingly, with global issues such as the impacts of climate change and numerous human health crises, there is a need...