How will carbon credits back the new RM118 million Climate Sukuk?

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Carbon Credits Underpin RM118 Million Climate Sukuk

The newly launched RM118 million Climate Sukuk is backed by 40,400 tonnes of verified carbon credits originating from the Selangor government's Energy Efficiency Initiative. This innovative issuance integrates Shariah principles with green finance and digital tokenisation, aiming to fund green infrastructure and low-carbon projects. The sukuk, a joint issuance by Unity Group Holdings International Ltd and Tek Securities Ltd under the Labuan IBFC framework, was announced at the Global Islamic Finance Forum (GIFF) 2025.
Verified Carbon Credit Backing

The Climate Sukuk derives its backing from a specific quantity of verified carbon credits, totalling 40,400 tonnes. These credits are a direct outcome of the Selangor government's Energy Efficiency Initiative, confirming the environmental impact and value associated with the sukuk's underlying assets. This mechanism links financial instruments directly to tangible climate mitigation efforts.
Funding Green Infrastructure and Low-Carbon Projects

Proceeds from the sukuk issuance are earmarked for the development and implementation of green infrastructure and low-carbon projects. These initiatives will be spearheaded by Synergy ESCO, a company involved in delivering energy efficiency solutions. A key component of this funding includes upgrading strata properties across Selangor with ESG-compliant lighting systems, contributing to the state's broader sustainability goals.
Strategic Integration of Islamic Finance and Climate Action

The issuance represents a significant development in sustainable Islamic finance, blending traditional Shariah principles with modern financial innovations. By integrating digital tokenisation and carbon credit monetisation, the Climate Sukuk aims to set a new benchmark for sustainable investments that actively drive climate action. This approach seeks to deliver both financial returns and measurable environmental value.
Strengthening Labuan's Role as a Global Hub

The launch of this sukuk is also intended to bolster Labuan's position as an international centre for digital Islamic finance. Operating under the Labuan International Business and Financial Centre (IBFC) framework, the issuance leverages the jurisdiction's regulatory environment to attract investment and promote low-carbon economic growth. This aligns with the government's broader strategy to foster transparent and climate-aligned financial instruments.

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How will carbon credits back the new RM118 million Climate Sukuk?

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