Green Sukuk Investment and Renewable Energy Consumption for Sustainable Development Growth: A Literature Review

This review synthesizes theoretical and empirical studies on green sukuk investment as a financing mechanism to promote renewable energy (RE) consumption and achieve sustainable development growth (SDG). Drawing from multidisciplinary perspectives—environmental economics, Islamic finance, and sustainable investment—the review highlights how green sukuk serves as an innovative Sharia-compliant instrument bridging economic profitability with ecological preservation. Findings across studies indicate that green sukuk issuance positively correlates with macroeconomic stability, energy transition, and environmental innovation, while institutional, regulatory, and informational barriers still constrain adoption. The review integrates Ecological Modernization Theory and Social Responsibility Investment Theory to explain how technological advancement, ethical finance, and policy incentives interact in promoting RE development. Methodologically, recent studies utilize panel data (2000–2023) with fixed, random, and robust regression models to capture sukuk–RE dynamics. We identify research gaps in transparency, investor perception, and policy integration, offering recommendations for regulators and market participants to strengthen green sukuk ecosystems and support Malaysia’s carbon-neutral targets