Vice President and Treasurer of the World Bank, Arunma Oteh has explained that Green Sukuk financing scheme is promising for green projects.
Speaking at the International Monetary Fund-World Bank Annual Meetings in Indonesia, Oteh said the world is now focusing on projects that are based on sustainability.
Oteh added: “If governments have full commitment to protect the environment, many international investors would come to invest,” adding that, therefore, the emergence of Green Sukuk could be an alternative financing scheme for green projects.
Earlier, Indonesia at the ceremony introduced Green Sukuk, an Islamic bond used for financing environmentally friendly projects.
Indonesia Finance Minister Sri Mulyani Indrawati expressed confidence that the financing scheme, which is based on Islamic teachings, would have a significant role in contributing to sustainable development.
“Our challenge is how to carry out development that is in line with sustainable principles,” the minister said at the ceremony titled “Green Finance for Sustainable Development”.
She revealed that, in March, the Indonesian government issued Green Sukuk as an instrument to collect US$1.25 billion in funds to finance environmentally friendly projects.