Perhaps the most critical challenge for Green Sukuk is gaining popularity among international buyers, due to the lack of standardization and the threat of legal enforceability. Although the creation of the SRI Sukuk framework has partially solved the problem. However, there is still no comprehensive framework or regulation on SRI tools in Malaysia. The lack of a standard verification system for measuring the performance of green instruments has made investors and issuers think twice before entering Green Sukuk. The industry is therefore struggling to keep pace with the rapidly changing regulatory environment and to acquire local standardization at a minimum. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Furthermore, it took some time for the first Green Sukuk to be issued in Malaysia, despite the SRI Sukuk framework having been delivered a few years ago. One reason for the slow progress of green instruments in Malaysia is due to the lack of awareness, especially among investors and issuers, about what they could do and what was available. The World Bank has organized a series of seminars to attract the attention of green Sukuk traders in response to the problem. Reflecting the market's nascent reputation, market norms and standards for green bonds are still evolving. It is fundamentally a self-regulating market, although there are several voluntary suggestions, notably the World Capital Market Association's Green Bond concepts which were linked in 2014 via a number of banks and the focus on the use of proceeds, on the methods of evaluation and choice of tasks, control of income and reporting. Not to mention also that the secondary market for Green Sukuk is very limited due to the small range of investors holding Sukuk funds and other institutional investors who traditionally look for a strong secondary market to meet investors' liquidity expectations. The challenges of achieving crucial mass for the Green Sukuk market that will capture maximum issuance charges and enable liquid buying and selling in the secondary market, which in turn will result in efficient price discovery. This can be recognized by the fact that a more diverse set of issuers and investors come to the market to issue and engage in Green Sukuk or SRI issuances across numerous maturities and threat profiles. The Climate Bond Initiative also provides guidance, focusing on specific sectors. Other challenges of Green Sukuk include investor awareness, demand for energy supply, government support and demand for energy financing. At the same time, because Islamic finance is still extraordinarily new, it appears as a logical match for green bonds, or in this case study Green Sukuk, where demand is expected to proliferate. As we know, Sukuk is already limited to a pool of properties using nature which makes it easy to be green. However, achieving this goal comes with great challenges and achieving a sustainable and organized Green Sukuk market may be a long road ahead. Green Sukuk may expose itself to a higher risk profile, this is because most environmentally friendly projects require a sophisticated level of new technology based on the construction and operation of green technologies. Please note: this is just an example. Get a custom paper now from our expert writers. Get a Custom Essay On the other hand, there are also challenges in the.