Malaysia pioneers green Islamic finance with world's first RMB 200 million Climate Sukuk
The launch further cements Malaysia’s goal of positioning Labuan as the Global Hub for Digital Islamic Finance.
SHAH ALAM – Malaysia has once again set a global benchmark in Islamic finance with the introduction of the world’s first RMB 200 million Climate Sukuk, a groundbreaking instrument that combines Syariah compliance with green financing, digital tokenisation and carbon credit monetisation.
The sukuk, jointly issued by Hong Kong-listed Unity Group Holdings International Ltd (Unity Group) and Tek Securities Limited under the Labuan IBFC framework, was unveiled during the Global Islamic Finance Forum (GIFF 2025).
The launch further cements Malaysia’s goal of positioning Labuan as the Global Hub for Digital Islamic Finance.
Backed by 40,400 tonnes of verified carbon credits from the Selangor Government’s Energy Efficiency Initiative, known as the Green Initiative Programme, the sukuk directly reflects measurable carbon reduction achieved through Ultra High-Efficiency ESG lighting systems.
Funds raised will be channelled into green infrastructure and low-carbon projects spearheaded by Synergy ESCO, including the installation of advanced ESG lighting under the Selangor Green Initiative for Strata Properties.
Over the next decade, the programme aims to convert six million tubes and generate four million tonnes of carbon credits.
Unity Group Chairman and CEO Mansfield Wong stated that the Climate Sukuk provides a scalable model for sustainable investment and ESG integration within the Islamic finance ecosystem.
“It sets a new standard for Islamic finance to drive climate action, and this marks Unity Group’s shift from energy services to a sustainable fintech provider, delivering both financial returns and measurable environmental value,” he said.
Unity Group is also looking to broaden its sustainability portfolio with ventures in renewable energy and smart farming, supporting Malaysia’s transition towards a net-zero economy.
The launch gained national attention with Prime Minister Datuk Seri Anwar Ibrahim officiating the initiative at GIFF 2025, where he also signed a commemorative plaque at the Unity Group booth.
This innovative sukuk marks a new era of Syariah-compliant financial products aligned with the government’s climate-focused and transparent financial agenda outlined in Budget 2026.
Leveraging Labuan IBFC’s robust regulatory framework, the issuance underscores how Islamic finance can play a pivotal role in mobilising investments toward sustainable, climate-resilient growth.
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