Malaysia has achieved another global milestone in Islamic finance with the launch of the world’s first RMB 200 million (RM118.6 million) Climate Sukuk. This groundbreaking issuance combines Shariah-compliant principles with green finance, digital tokenisation, and carbon credit monetisation, positioning Malaysia at the forefront of sustainable financial innovation.
Jointly issued by Unity Group and Tek Securities Ltd under the Labuan International Business and Financial Centre (Labuan IBFC) framework, the sukuk was officially unveiled at the Global Islamic Finance Forum (GIFF) 2025. The initiative reinforces Malaysia’s ambition to establish Labuan as a global hub for digital Islamic finance and sustainable investment solutions.
The Climate Sukuk is backed by 40,400 tonnes of verified carbon credits derived from the Selangor state government’s Green Initiative Programme. This programme reflects real and measurable carbon reduction outcomes achieved through the implementation of ultra-efficient ESG lighting systems across the state.
Proceeds from the sukuk will be used to finance green infrastructure and low-carbon projects spearheaded by Synergy ESCO (M) Sdn Bhd, including advanced ESG lighting installations under the Selangor Green Initiative for Strata Properties. Over the next decade, the initiative aims to replace six million lighting tubes and generate up to four million tonnes of carbon credits, marking a significant step toward sustainable urban development.
Unity Group chairman and CEO Mansfield Wong described the Climate Sukuk as a replicable model for sustainable investment and ESG integration. He said the initiative sets a new benchmark for Islamic finance to drive climate action, while also signifying Unity Group’s transition from an energy services provider to a sustainable fintech company that delivers both financial returns and measurable environmental value.
Looking ahead, Unity Group plans to broaden its portfolio into other sustainability-driven ventures such as renewable energy and smart farming projects to further support Malaysia’s journey toward a net-zero economy.
The launch of the Climate Sukuk also received strong government support. Prime Minister Datuk Seri Anwar Ibrahim visited Unity Group’s booth at GIFF 2025 and officiated the initiative by signing a commemorative plaque. The Prime Minister’s presence underscores the government’s commitment to fostering a climate-focused, transparent, and innovation-driven financial ecosystem under Budget 2026.
Leveraging Labuan IBFC’s strong regulatory framework, this pioneering issuance exemplifies how Islamic finance can be a catalyst for sustainable investment, climate resilience, and measurable environmental progress. The Climate Sukuk not only strengthens Malaysia’s leadership in Islamic finance but also demonstrates the nation’s dedication to advancing global green finance initiatives.