This study systematically reviews the empirical literature on green sukuk, an Islamic financing instrument, and examines its role alongside green investment and green bonds in supporting environmental sustainability and sustainable economic development. Following the PRISMA protocol, records were retrieved from the Scopus database covering journals indexed in quartiles Q1 to Q4 and published from 2018 to 2026, using a search string combining the terms green bond, green sukuk, green investment, and sustainability. Of 82 records identified, 43 studies met the inclusion criteria and were analyzed thematically. The findings show that green sukuk exhibits distinct risk and return characteristics compared with conventional green bonds and functions as a viable Shariah compliant channel for financing renewable energy and other environmentally sustainable projects, with the most active markets found in Malaysia, Indonesia, and Gulf Cooperation Council countries. These sukuk specific findings sit within a broader literature showing that green investment is consistently associated with lower carbon emissions, higher clean energy consumption, and improved sustainability performance, although evidence remains concentrated in China and other developing economies. The results carry implications for Islamic capital market regulators and Shariah compliant fund managers seeking to expand green sukuk issuance as an alternative or complement to conventional green bonds. This study concludes that green sukuk remains an underexplored but promising instrument within the broader green finance ecosystem and proposes a research agenda focused on the regulatory design, market development, and comparative performance of green sukuk relative to other green financing instruments.
Copyrights © 2026