SC proposes sukuk framework for climate resilience
KUALA LUMPUR: The Securities Commission (SC) has proposed a new purpose-driven sukuk framework aimed at mobilising capital for climate adaptation, resilience and sustainable development, as the country faces growing exposure to climate-related risks.
The Securities Commission (SC) has proposed a new purpose-driven sukuk framework, titled Sukuk Prisma SDG, aimed at raising capital for climate adaptation, resilience, and sustainable development. This framework will build upon Malaysia's existing Sustainable and Responsible Investment (SRI) sukuk framework. The Sukuk Prisma SDG will be Shariah-based, aligned with the SC's Maqasid al-Shariah Guidance, and incorporate the Asean Taxonomy and international green bond principles.
Malaysia, situated in a climate-vulnerable region, has incurred over US$2.2 billion (RM8.95 billion) in flood-related losses over the past five years, highlighting the nation's increased exposure to climate-related risks. The framework aims to mobilize capital for climate adaptation and resilience, addressing the need for stronger market infrastructure and clearer adaptation-focused frameworks to measure and verify outcomes.
Malaysia has established a robust ecosystem for sustainable finance, with outstanding SRI sukuk growing from US$1.3 billion in 2020 to US$12.9 billion in the previous year. The country ranks among the top three issuers of green, social, sustainability, and sustainability-linked bonds and sukuk in the region, accounting for approximately a quarter of total regional issuances.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
