الصكوك الخضراء

Abstract EN

Green Instruments have the capacity to expand the range of sustainable instrument market, together with helping bridge the gap between the traditional and Islamic financial theories.

No doubt, depending on instruments (Sukuk) in funding green projects is a method adopted by some countries to promote sustainable development.

However, the major challenge facing many developing countries willing to move towards the green economy lies in the lack of institutional capacities pertaining to establishing and applying the environmental policies.

This also requires concerted efforts of all relevant authorities with the aim of building the endogenous capacities in this regard.

This also requires reviewing and amending the legislative and regulatory frameworks to encourage the needed transformation towards green capital markets.

Thus, a lot of countries have begun to take practical steps in this sphere, whether in Europe, the USA and Asia, or at the level of regional and international organizations as well as the Arab countries.

A range of financial and stock market organizers in Arab and African countries (including Tunisia, Egypt and Morocco) has recently signed the so-called Marrakesh Declaration on encouraging transformation towards green capital markets within the framework of the activities of the UN Climate Conference.

In addition, some countries have also started to create the appropriate legislative and regulatory framework to encourage issuing the green securities.

Green instruments face a number of challenges that contribute to slowing down and weakening its spread.

These challenges may be legal or regulatory and some of them related to country evaluation.

One of the most important and prominent challenges facing these instruments is to be accepted by the global investors due to the weak measures of risk assessment and the possibility of instruments to be subject to legal provisions.

Consequently, the instruments need to standardize local tools and enact flexible laws that bring together the capacity to achieve goals and positivity in the face of risks.

Therefore, the length of time to structure and legalize these instruments is considered among the challenges facing them whereas drafting these laws and regulations that make these instruments acceptable to governments, investors and legislators takes a long time a matter which constitutes a major challenge leading to increasing the costs of this process.

Working to unify a domestic legal and regulatory framework for these instruments is a temporary way out of this dilemma.

Egypt is characterized by climate, human and geographical features that qualify it to become one of the largest renewable energy markets in the world in the near future.

The green instruments are considered one of the best methods of financing such projects and the legislator has recently done well to regulate it.